Should I get long-term care insurance?
This is a question I hear a lot in my professional life and I think the answer depends on your level of personal wealth and the specific policy you are looking at.
In the case of a serious illness, long-term care bills can stack up fast (up to $250/day), not to mention the loss of income from not being able to work. Based on this, it would appear that you would want to have a long-term care insurance policy to protect your retirement savings and to help pay for assisted-living centers, home care, and other services. But another key thing to note is that most people admitted into a long-term care facility are discharged within 90 days, and depending on how long your policy's "self-insurance period" is, you might be discharged before coverage even kicks in.
So, the general advice is this: if you have little wealth, you should not spend money on long-term care insurance and instead rely on whatever government programs are available. If you have great wealth, you are better off self-insuring. And if you are in the middle, you should look at your age and general health to estimate the probability of you being in a long-term care facility for longer than 90 days.
If you are young and unlikely to ever experience a long stay in a care facility, you are better off self-insuring by setting aside some savings every month to pay for future long-term care. Provided you are disciplined enough!
More Q&As from our experts
- Will long-term care insurance cover the cost of staying in a nursing home?
- Does my company need cyber insurance?
- Does home insurance cover snow damage?
Stay informed with Insuranceopedia!
The world of insurance can be complicated. Subscribe to the Insuranceopedia newsletter and stay in the know! Access expert content, industry term definitions and answers to your questions from knowledgeable insurance insiders. Arm yourself with what you need to know to keep your assets and your family safe.