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.
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.
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.
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.
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.
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.
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.