Long-Term Care Insurance: Factors to Consider

July 02, 2019

Over the years, the cost of nursing home and long-term care costs have risen and continues to surge. Studies reveal 69% of retiring Americans will need some sort of long-term care during their life.1 And if there’s a single unsolved problem in retirement plans, it’s what to do when it comes to covering long-term care costs. For many who can no longer care for themselves afford long-term care, long-term care insurance (LTCI) has become the solution.

When it comes to choosing a LTCI policy, how do you determine which is right for you? Here are some factors to consider:

  • Coverage – LTCI policies may cover nursing home care, home health care, assisted living, adult day care, or a combination of these. The more comprehensive a policy is, the better as it’d provide you with more flexibility.
  • Waiting Period – This is the period of time before benefits start kicking in, which can be between 0 and 90 days. So, think about what you can cover and what you can’t and choose a time period that’s feasible.
  • Daily Benefit – This is the amount the insurance pays per pay towards your long-term care expenses. Calculate the costs of your long-term care services to determine how much coverage you’ll need. Otherwise, you’ll have to cover any additional costs.
  • Benefit Period – When purchasing an LTCI policy, you’ll need to choose how long you’d want your coverage to last. These plans come with two-year, three-year, five-year, and unlimited benefits periods.

Insurance is there to protect you in the event something happens. And an LTCI policy is no different–there’s value in being protected. Reach out to us and we’ll help you explore and compare the many different options to meet your circumstances. 

The content within this document is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This document is not an offer to purchase, sell, replace, or exchange any product. Insurance products and any related guarantees are backed by the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.

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[1] https://www.fool.com/retirement/2018/09/02/5-long-term-care-stats-that-will-blow-you-away.aspx