4 Indicators Warranting Long-Term Care Insurance Coverage at a Glance

Healthcare prices have been rising for decades. While this affects almost every American, those with limited means, such as seniors and retirees, are particularly affected.

This is especially true when considering the hefty costs of long-term care, which many older Americans will require (seven out of ten, according to insurance provider Genworth). Nursing homes typically cost between $8,669 and $9,733 per month, while in-home care costs between $5,720 and $6,292.

Long-term care insurance, among other options, can assist you and your loved ones in managing escalating healthcare expenditures. But is this unique type of insurance right for you? We asked some professionals for their ideas on how to determine whether long-term care insurance is good for you.

According to the experts we spoke with, there are four signs that you may need long-term care insurance.

1. You’re over 50

According to Dan Schulte, senior vice president of annuities and insurance at Benjamin F. Edwards, the “sweet spot” for buying long-term care insurance is in your 50s, even though it is typically needed later in life.

“These contracts require medical underwriting, so the later someone waits to purchase coverage, the less likely they are to qualify for care, and the more costly the premiums,” Schulte said.

In your 50s, you may have extra money to put toward additional retirement and health care expenses.

“At that point, retirement comes to mind, and people begin to seriously consider situations that they may have struggled to comprehend earlier in their lives,” says James Bremis, a senior financial adviser with Sentinel Benefits & Financial Group. “When you’re younger, there are usually a lot of other competing priorities — kids, college funding, etc.”

2. You’re still in good health

Consider long-term care insurance before you develop chronic conditions or become unable to care for yourself.

“Long-term care insurance is not a good fit for people who already have complicating, chronic medical conditions that would prohibit them from qualifying for the medical underwriting required,” says Bill Comfort, director of training at Certification for Long Term Care and owner of Comfort Assurance Group.

However, getting your policy when you’re healthy will do more than just help you qualify. It can also result in cheaper premiums.

3. You want to maintain a comfortable retirement

Long-term care insurance can keep you from depleting your retirement savings too quickly, so if you’re concerned about maintaining a decent lifestyle as you age, it may be worth considering.

This is an especially critical factor for couples, according to Comfort, because one will likely require long-term care before the other, leaving the remaining independent spouse with little financial means.”For couples where one needs care, most can’t afford that extra monthly expense without seriously jeopardizing their ongoing lifestyle and financial security,” Comfort said.

4. You have no caretaker options

Consider long-term care insurance if you don’t have a caretaker (e.g., children, spouse) or don’t want to burden loved ones with the costs of your care.

“Long-term care insurance is also for those who do not want to burden their children or family members if care is required,” says Suzanne Haslam, senior vice president of Woodruff Sawyer, an insurance and benefits company. “It will allow someone to pay for outside or in-home care that they need.”

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