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Is a LTC Policy Right for You?

Policies offer varying amounts of coverage. Study a policy, understand what it covers, and determine if the benefits are likely to meet your needs into the future.

The Long-Term Care Insurance Guide includes worksheets to determine if a long-term care policy might meet your needs.

5 Quick Tips

  • Avoid a long-term care policy if you are eligible for Medicaid now.
  • Remember that insurers can increase your premiums in the future.
  • Some experts recommend spending no more than five percent of your income on a LTC policy.
  • You may return a policy within the first 30 days and have any premium refunded.
  • Free counseling and additional information about long-term care insurance is available through the Alaska Commission on Aging.

Factors to Consider

A LTC policy is just one possible component of a comprehensive financial strategy. Here are some additional factors to consider when looking at LTC insurance.

Age and Life Expectancy

The longer you live, the more likely it is that you will need LTC. Do you have family members that have lived a long time? Women are more likely to need LTC because they have longer life expectancies.

Nonforfeiture Provisions

The younger you are when you buy the insurance, the lower your initial premiums will be.

However, there is no guarantee your rates will not go up. Look for policies with nonforfeiture provisions. If premiums become unaffordable, nonforfeiture provisions can give you the option to get some money back, keep the policy with reduced benefits, or keep the same benefits for a limited period of time.

Family Care Situation

If family care is not available and you cannot care for yourself, paid care outside the home may be the best alternative. It is important to buy a policy that will cover the type of care you expect to need and that will be available in your area.

Family Health History

If chronic or debilitating health conditions run in your family, you could be at greater risk than another person of the same age and gender.

Income and Assets

You may choose to buy a LTC policy to protect assets you have accumulated. But a long-term care policy is not a good choice if you have few assets or a limited income.