Health care costs have continued to rise at an alarming rate. Health care needs often grow as we age. For many of us, the potential cost of health care for our later years is enough to cause us to lose sleep. Long-term care insurance is one of the solutions some are turning to to address this situation.
The right choice at the right time
It is not true to suggest that everyone should invest in long-term care insurance. Like many estate planning tools, the value of long-term care insurance is highly dependent on the individual. Whether you should invest in this form of insurance is a discussion you should have with a knowledgeable estate planning attorney. Even if the product is right for you, now might not be the best time to invest. You need to understand your options before making a decision.
Assets and costs
The usefulness of long-term care insurance depends on the individual’s assets and the cost of the plan. Long-term care insurance is, frankly, expensive. The premiums are thousands of dollars per year, even for people in good health in their 40s. Most people do not consider the possibility that they might need long-term care that far out. Only people with the assets and flexibility to cover the premiums are likely to benefit from this form of insurance.
Limited time offer
Few, if any, insurance providers offer policies that will cover expenses for more than four years. If the need for long-term care extends beyond that timeframe, you will need to cover the expenses in another way. Long-term care insurance is not a substitute for other savings devices. Your should consider it as part of your estate plan, along with many other alternatives.
Source: Chicago Tribune, “Thinking of buying long-term care insurance? Consider these costs,” by Debbie Carlson, 6 November 2017