A long-term care insurance policy can be a significant investment because it covers a lot of costs. Typically, you purchase a policy that lasts for a specific number of years, usually 2 to 6, and covers a certain amount of daily benefits. For example, you may set up long-term care benefits lasting for 5 years, which pay out $200 of daily benefits. If you need less than $200 a day for personal care costs, the policy will last longer than the 5 years.

You should invest in long-term care insurance before you need it to reduce the cost of this type of insurance. An older person who already has extensive medical needs will pay a premium to get this type of coverage, whereas a healthy, middle-aged adult will pay significantly less.

The biggest drawback to long-term care insurance is that it can be a pricey investment. However, if you’ve built up significant assets and require long-term care, the cost of these personal services will quickly drain those assets. Similarly, if you don’t have a nest egg built up but require long-term care, you may not receive the care you need or deserve. In a lot of cases, the burden of care falls on the family, especially when there isn’t any insurance to cover the cost.

It’s a good idea to include long-term care needs in your financial plan for two reasons: you’ll know you have long-term care available, and you’re not putting an additional financial burden on your family when it gets to that point.

Long-term care is the only insurance solution that deals with the realities and costs of aging beyond mere medical care. We want to help you understand what it is, so you can decide if this is a good option for you. Below, we answer some of the most common questions. For more information, please contact us.

Why Do You Need Long-Term Care Insurance?

Even with great health insurance, you will have personal care costs that aren’t covered as a medical bill. Maybe someone comes to your home every day to help you manage your life or you might move to an assisted living facility. Long-term care can be very expensive, which is why it’s a good idea to prepare by getting adequate insurance coverage.

Who Needs Long-Term Care Insurance?

You will most likely use the long-term care benefits when you’re older and your health becomes more fragile. But you must purchase long-term care insurance long before you actually need it. If you’re working on a financial plan right now, it’s probably a good idea to add long-term care insurance to the mix. We invite you to speak to one of our advisors to help you determine how much long-term care insurance you need.

What Does Long-Term Care Insurance Cover?

Long-term care insurance covers custodial and personal care costs when you need help in your daily living. It can include nursing care, therapy, an in-home care service, or living in a nursing home. Your policy will have a benefit of a specific dollar amount each day for a certain number of years. If you require less than the daily limit, your coverage will extend accordingly.