Long-Term Care Insurance: Weighing the Options
The cost of Long-Term Care Insurance premiums is largely dependent on several factors, including age, policy type, and level of coverage (nursing home vs. in-home or assisted-living care or other type of care). Therefore, it is always smarter to purchase a policy while you are younger and healthier since coverage will always be less expensive and easier to meet health qualifications.
Hybrid insurance products that include a death benefit are also worth exploring for many people.
Having a plan in place to address extended care can provide these benefits:
- Keeping financial commitments during retirement
- Securing the financial viability of the other spouse
- Potentially reducing taxes by avoiding selling an asset that would involve capital gains
- Potentially avoiding the need to sell assets during a down market in order to fund care
If you have no assets and don't have the income to afford long-term care insurance, you might be eligible for Medicaid. In this case, long-term care insurance might not be right for you.
But for many Americans, a sensible policy purchased at a relatively young age can be one of the smartest retirement-planning moves one can make.