Does long-term care insurance make sense?

Care is required when you can no longer take care of yourself.

According to the Department of Health and Human Services, long-term care a range of services and care that may be required to meet your daily living and personal care needs. That Agency reports About 60% of the population will need help getting dressed, preparing meals, or conducting daily living.

Long-term care may be required because of chronic illness, old age, an accident, or other medical problemss like a stroke. Long-term care insurance can be taken out to cover the costs of care.

What exactly is nursing care insurance?

Although policy enablement rules vary from state to state, care insurance is the reimbursement of costs related to room, board and care for services that help with activities of daily living.

“You don’t have to be able to do three or more of these daily activities before your long-term care insurance can be claimed,” Lindsay Malzone, Medicare Expert at, tells FOX Business.


How much does it cost?

According to Malzone, prices vary widely depending on several factors such as monthly benefit amount, inflation protection, blackout period, and age.

“The price will be significantly lower if you get the insurance when you’re younger,” she says.

Another factor to consider is that these insurance plans are covered.

“You have to be healthy enough to qualify for coverage with most insurers,” says Malzone. “Some companies will approve you with health issues, but the premium may be increased.”

That being said, she reports that the average cost for a 55-year-old can range from $950 to $1,500 per year. Depending on policy selection and the other factors mentioned above, the policy could deviate from the average provided, she says.


What would it cover?

Long-term care, Malzone says, covers non-medical expenses related to nursing homes or assisted-living facilities. In addition to the usual room and board costs, the funds can be used to cover support for daily activities such as:

– Bathe

– Dressing

– Meal

– Incontinence care

– Going to the toilet (going to the toilet or getting up)

– Transfer (getting in or out of a bed or chair)

Additionally, Malzone says that one of the most common chronic conditions supported by long-term care is people with Alzheimer’s or other types of dementia.

“People with these diseases require specialized care in facilities that deal with their unique situation. People with chronic diseases need to live in a place that helps them maintain their health and quality of life,” she says.

Why should it be bought?

Nursing homes and assisted living are expensive. According to Malzone, the cost can range from $800 to $8,000 per month. These costs vary depending on the location of the facility and the amenities offered.

“Many seniors can’t afford to pay for assisted living from their Social Security, so they rely on family members or go there on their own,” she says.

If you have long-term care insurance, your benefits may cover the cost of some or all of the care.

What is the ideal age to buy it?

Malzone agrees buy a long-term insurance policy once you can budget for it and the cost is significantly lower for younger people.

“Most people get their long-term care insurance in their 50s,” says Malzone. “This is due to being in a balance of health to qualify and having sufficient income for the budget.”

Once the policy is in place, the premium cannot change based on age and health, she notes.


Long-term care and its realities

Chris Orestis, President of Retirement Genius, reports that 84% of people surveyed believe they will never need long-term care, but if they do, they will be able to afford it.

“The reality is that 70% of people over 65 will need long-term care in the rest of their lives,” he tells FOX Business. “Nothing will erode a retired person’s financial security faster than the expensive cost of long-term care. One of the wisest steps a person can take to stave off a disaster caused by losing the ability to live independently for longer is to have long-term care insurance.”

Orestis says there are three important things to understand about long-term care insurance:

The younger and healthier you are when you graduate, the cheaper it will be.

“If you’re able to get a policy through your employer, you should sign up right away to get it at a very low cost with no risk taken, and if you leave your employer you can keep the policy and take it with you,” says Orestis .

People make the mistake of thinking that Medicare offers long-term care coverage, and it doesn’t.

“Medicaid provides coverage, but to qualify, your total assets and income must be below the poverty line. Paying out of pocket for care can easily cost $10,000 a month and quickly bankrupt a family,” he says.

People who have long-term care insurance are considered “privately paying” and are more desirable to care providers than people who don’t have insurance coverage and/or are on Medicaid, Orestis says.

“The reality is, if they can only take one person, they’re going to take the person on long-term care insurance over the person on Medicaid every time,” he says.

If you pay privately, Orestis says you can decide what kind of care you want and where you get it, e.g. B. stay at home. If you get Medicaid, you won’t be able to make those decisions anymore and will almost certainly end up in a nursing home sharing a room with one or two other people, he says.

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