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Why Long-Term Care Insurance is Worth Having

| November 03, 2021

Let's start with the most echoed statement on the web: Americans are living longer but aren't necessarily healthier, leading to health problems later in life. The U.S. Department of Health and Human Services reports that 69% of people will use long-term care services at some point. And that care comes with a cost: Long-term care costs range from $19,500 per year for adult day care to $102,200 per year for a private room in a nursing home. 

Beyond costs, what other arguments circulate regarding buying long-term care insurance?

It can protect your assets. Medicare caps payments for skilled care at 100 days and only pays after meeting specific requirements. Medicaid only kicks in after you spend down your own assets. Private health insurance only pays for doctor and hospital bills. If you plan on any of these options, you'll most likely spend most of your own money to pay for care, depleting your hard-earned savings.

It can take the pressure off your family. Becoming a caregiver is physically, emotionally, and often financially burdensome. Many people, even family members, aren't able to make such a huge sacrifice. This is especially true when the caregiver is a spouse or partner also facing their own aging health issues.

It can provide you with care options. Long-term care insurance gives you flexible options when it comes to deciding where to receive care. Many facilities don't accept Medicaid, so your options may be limited to a no-frills nursing home with shared rooms rather than a more amenity-oriented private nursing home where you'd be more comfortable.

It may come with life insurance protection. Many policies are hybrid policies bundling long-term care coverage with life insurance coverage (or an annuity). This type of policy offers financial protection should you pass away while also giving you the knowledge in knowing that your long-term care needs are covered.

Still have questions surrounding long-term care options? As your dedicated team, we can help you find the right choice for your situation. Reach out to us, and we'll provide you the information you need to make better-informed decisions.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products 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.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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