Last week there was some discussion on Twitter about whether long term care insurance is worth it. We chimed in, albeit briefly, with the comment, “If you need it yes, if not, no.” Obviously there is more to it than that. This is a serious topic that could have a huge impact on ones future. So for those considering long term care insurance, a better answer is needed, so that’s what we’ll try and do here.
Is long term care insurance worth it? LTCI is, relatively speaking, similar to other types of insurance, except that it’s not required. So, you have to ask yourself what matters and we can narrow this down to two questions:
- What I am getting out of insurance for long term care?
- Is it worth the cost?
If you feel there is enough value to pay the premium, the peace of mind that comes with knowing you’ll have some financial backing in case of need, and are comfortable paying that premium, than yes, it is a good idea to have LTCI.
If you don’t want, or need, that piece of mind and aren’t comfortable, for whatever reason, paying the premium, than don’t buy long term care insurance. Roll the dice and hope that nothing goes wrong. (Keep in mind, long term care insurance costs increase significantly with age.)
Before you make a yes or no decision about LTCI, get educated. Learn how it works, what it covers and how much it costs. Kiplinger recently published a fantastic long term care insurance guide you can find on our site HERE. To get an idea of long term care insurance costs, depending on your age, click HERE or the image below.
Get a An Estimate of Long Term Care Insurance Costs By Clicking Above
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Great post! very well done!
Is Long Term Care Insurance Worth It is not a plain and simple question.Part of the replier’s comment mentions it is not required like other insurance. On reflection, in my opinion most insurance is not required or obligatory, with perhaps the exception of auto insurance. Our homeowners insurance is voluntary, yet almost no one would consider not having it, which is equally true of most of the property and casualty insurance business.
Health insurance is not mandated, and those without it generally are not going without it out of choice, but out of necessity of one type or another. Life insurance is another example. It is not mandatory, but people starting with a family understand the value of life insurance. Most people don’t think they will die before their children are grown and on their own. People buy life insurance because of the consequences to their family and loved ones IF something were to happen to them. Statistics reveal that most people don’t use their life insurance, but it brings them peace of mind knowing that their spouse and family will be provided for in the unlikely event something tragic were to happen.
So the question is: “Is Life insurance worth it?” You bet, every penny, and hopefully you don’t ever need it! Long term care is really just the same. It is not only the patient that a long term care event impacts. A Long term care event is about the consequences it has on family and loved ones IF it were to occur. Providing a plan for your spouse and children to remain in their existing relationship as a care coordinator and not that of the caregiver is probably one of the greatest gifts anyone can give their family.
If you love your family and friends, is that worth it? Isn’t that what we are really talking about when we discuss long term care? If you doubt that, visit an assisted living facility or nursing home, and see the love and care that families exude when they visit their loved ones.
Vivian,
Thank you for pointing this all out. You are very right. And consider this…if you get in a car accident you may end up paying a couple thousand dollars for repairs. If you end up needing long term care though, the costs, as we know, could very well soar into the tens of thousands of dollars.
Costs are more likely to be in the hundreds of thousands. Check this site and sree what it will be like when you turn 75 or 80: http://www.genworth.com/content/products/long_term_care/long_term_care/cost_of_care.html
Great link, thanks for sharing!