Planning for the Future: Who Needs Long-Term Care Insurance and When to Buy

Planning for Long-Term Care

Most people will need some form of long-term care as they age. Planning for that care is one of the biggest challenges older Americans face.

The Role of Long-Term Care Insurance

Enter long-term care insurance, which helps cover the costs of extended medical care whether at you’re home, or in a nursing home or adult day care. Long-term care insurance policies can be helpful but pricey, and if you wait too long to buy, your premiums will be sky-high. And that’s if you’re able to take out a policy at all.

Who Actually Needs to Buy Long-Term Care Insurance?

If you live a long life, the chances of needing long-term care are increasingly high, says Jesse Slome, executive director of the American Association for Long-Term Care Insurance. Often, this comes at a cost. As many as 70% of Americans over age 65 will require some kind of long-term care, and 48% end up paying for that care, according to the U.S. Department of Health and Human Services.

When Should You Buy Long-Term Care Insurance?

One of the most common calls Slome says he gets at the association is from adult children asking about insurance that can help pay for a parent who’s looking at nursing homes or already using an in-home aide. And each time, he has to tell them they’re too late: Once you already need care, you won’t be able to buy a plan anymore.

Tips for Buying Long-Term Care Insurance

Unlike some other types of insurance, you typically only buy long-term care insurance once. As long as you keep paying your premiums, the company can’t drop you. “It really pays to talk to someone who knows what they’re doing,” Slome says.
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