Should You Buy Long-Term Care Insurance?

Should You Buy Long-Term Care Insurance?Research shows that most of us will need some sort of end-of-life care. Many people choose to fulfill this need by obtaining long-term care insurance so their estate is not depleted by healthcare costs. There are several questions anyone considering the purchase of long-term care insurance should be asking, including:

Will you need long-term care? Recent research says that about 70 percent of Americans will need some kind of assistance after reaching the age of 65. For a majority, that assistance need will be minimal. Long-term care insurance benefits don’t kick in until a policyholder is unable to perform at least two of five daily living activities: going to the bathroom, getting in and out of bed, bathing, dressing, and eating.

What will the government pay? If you have been hospitalized, Medicare will pay for some assistance, but it does not cover long-term care. To qualify for long-term care under Medicaid, you generally have to have under $2,000 in financial assets.

What is your net worth? For those with less than $200,000 in assets, experts say long-term care insurance is not a good buy. Those with over $2 million in assets can usually fund their own care. For those in-between, experts recommend setting funds aside to self-insure. Those who lack the discipline to save for long-term care may be good candidates for private insurance.

How much coverage will you need? The Society of Actuaries says that, on average, men will face a period of severe disability of 18 months, and women twice that long – three years. Would you need to be totally covered for this period, or just partially covered?

If you’d like to learn more about how we can help you with your long-term care and Medicaid planning, please contact us for your free initial consultation at one of our conveniently located offices in Fort Pierce, Stuart, Port St. Lucie, Vero Beach, and Okeechobee.