Making a Decision on Long-Term Care Insurance

Nobody really wants to think about getting old and needing long-term care, but it’s important to consider the possibility that you might need expensive care. Do you have the savings to pay for this if it becomes necessary, or should you look at taking out a long-term care insurance policy? There are arguments for both sides which you really have to weigh up for your personal situation.

If you have normal health and there is no debilitating illness in your family, you can use the average statistics to figure out your situation. Someone who’s 65 years old now has a 9% chance of needing a long nursing home stay - but even this could be only months, rather than years. A policy would usually cost a minimum of $1,000 a year so you might calculate that investing the money instead would be a smarter option.

On the other hand, if you have seen parents, uncles and aunts or siblings already go through long-term care due to illness that could be hereditary, you probably should have a different attitude. But pick a policy that is flexible and includes a deductible so that the cost is reduced. Also consider whether health care is particularly expensive in the area where you live and whether you might need more than the average policy.