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Understanding Long-Term Care Insurance

Trusts Can Future-Proof Your Estate Plan
Long-term care insurance covers expensive nursing care needs. However, is it a good investment? Here’s what experts say about what you should take into account.

Understanding long-term care insurance or LTC insurance is important when someone begins to need assistance in their daily living, according to Beck, Lenox & Stolzer Estate Planning and Elder Law, LLC, LLC.  LTC insurance covers nursing homes, assisted living and home health care expenses, explains WCAX 3’s recent article entitled “What to consider before you invest in long-term care insurance.”

A long-term care insurance policy helps cover the expense of that care when you have a chronic medical condition, a disability, or a disorder, such as Alzheimer’s disease.

Most policies will reimburse you for care given in a variety of places, such as:

  • Your home
  • A nursing home
  • An assisted living facility; and
  • An adult day care center.

“If you live a long life, the chances of needing long-term care are high, but long-term care insurance is not an option for everybody. You need to start thinking about it generally before you turn 65,” said Jesse Slome, the director of the American Association for Long Term Care Insurance.

You should consider any assets you want to pass onto your children and whether it is worth paying the premiums. Planning ahead is recommended. It is best to be prepared for what can happen. Predictions are difficult to make.

There are also medical requirements for some plans, and you must be medically eligible. Therefore, if you have serious illnesses or the beginnings of dementia, you will not be able to obtain long-term care insurance.

Experts also say that your income and savings, what you want to pass on to the next generation, and what role your family will play in your care are all factors to consider when taking out a policy.

LTC insurance policies are complex, and they vary significantly.

It really requires you, the consumer, to do some comparison shopping or ideally work with a specialist who understands and can do the comparisons for you.

Selecting LTC insurance is a lifestyle and financial decision. It can be very costly, especially the older you are when you purchase it.

Talk to an experienced estate planning attorney about how LTC insurance can benefit you if you need help with your Activities of Daily Living (ADLs).  This should be part of a bigger discussion with your attorney about elder care needs. Understanding long-term care insurance and deciding what is best for you can impact your financial future should you need to utilize it.

Reference: WCAX 3 (April 11, 2022) “What to consider before you invest in long-term care insurance”


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