Is Long Term Care Insurance Right for You?

With age, the need for long term care becomes a possibility for many people. To prepare, you must decide how you will pay for this pricey care. Long Term Care Insurance is one option, but it can be quite expensive and may not cover all of your costs. Before you sign up, make sure you understand what your policy will cover, if you really need it, and what other options you may have.

What it Does

Long Term Care Insurance is a policy that may cover a variety of long term care options. Policies vary from one insurance company to another and may or may not include benefits for in home care, nursing home care, and hospice care. It is best to shop around and find a policy that meets your needs and desires.

When to Use It

You should consider Long Term Care Insurance if you have an estate with a worth of $300,000 to $500,000 above the value of your home. In this case, you may be able to afford the pricey premiums associated with this type of insurance. With a sizable estate, you may also be able to afford some of the costs not covered by Long Term Care Insurance.

Ninety-five percent of people do not need Long Term Care Insurance. This is because only ten percent of nursing home residents actually stay in a nursing home for more than three years. For as many as two-thirds of men and one-third of women, nursing home care is never used.

Other Options

There are many alternatives to long term care insurance that you should consider when planning for extended care costs. Investment is one option. Investing your retirement funds is a good way to provide extra income for your medical needs in your later years.

Medicare will cover some long term care costs, although most of what it covers is the medical side and it will not even cover the medical side after 90 continuous days of skilled nursing care. If your assets and income are limited, you may be eligible for Medicaid. This government program will cover most long term care expenses.