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Should you invest in Long-Term Care Insurance

Should You Invest in Long-Term Care Insurance?

Elder Law, Estate Planning

Many of our clients and prospective clients ask us about buying long-term care insurance. Although we are not investment advisors nor insurance brokers, we know that purchasing or not purchasing a plan can be complicated by high premiums, age limitations, and health concerns.

There are many pros to investing in long-term care insurance, including the ability to choose your care, hire help without dipping into savings, protect your assets, and preserve the inheritance for your loved ones. However, this doesn’t mean that long-term care insurance is necessary or right for everyone.

Deciding Factors

A number of factors determine whether long-term care insurance plans are right for you. Here are the key factors we address with each of our clients contemplating long-term care insurance:

1. Age 

If you are in your early 50s, you might be wondering if it is the right time. Most financial advisors will suggest purchasing long-term care insurance by the age of 60. According to LongTermCare.gov, people at 65 have almost a 70% chance of needing long-term care services and support in their remaining years. One-third of today’s 65 year-olds may never need long-term care coverage, but 20% will need it for longer than five years.

2. Financial Situation 

Long-term care insurance is a significant expense, and it doesn’t make sense for everyone. There are two ends of the financial spectrum, where long-term care insurance is not the right choice. Those who are wealthy will most likely pay long-term care out-of-pocket without dipping into savings, and for those on the other end of the spectrum that heavily rely on government financial aid, this insurance may be an unnecessary expense. If you are somewhere in the middle, looking into long-term care insurance would be a suitable option.

3. Long-Term Plan/Personal Situation  

Evaluate your situation and how it could change as you age. You will need to decide what you would like to happen in terms of your care. Consider your health, hereditary conditions, longevity in your family, potential caregivers in your family, and your preferred long-term plans, such as aging in place, going to a nursing home, etc. If you know that you will need long-term care in the future, you might consider investing in it now, and not wait.

Deciding when to buy long-term care insurance is not an easy decision and should be part of a larger discussion about your estate planning and care. A comprehensive plan now can help preserve your future and your family’s future later.

An experienced elder law attorney can help you assess whether long-term care insurance is right for you and your family and what other legal avenues and protections may be available to you. Consult with one of our experienced elder law attorneys by contacting our office at 856.782.8450 or [email protected]

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