Chances are, you are like the majority of individuals who have reached middle age. The primary concerns in your life are paying your monthly bills, making sure your children receive a good education, as well as the all-important goal of saving some money every month for retirement.
At this point, retirement may feel a long way off, but it will arrive sooner than you think. You might have heard about long‑term care insurance — see What is Long Term Care Insurance? — but you probably dismissed it with questions such as “What is it?” or “Who needs it?”
The answer is that many people will need some form of long‑term care at some point in later life. You might reply that you already have health insurance, and if you do, that helps; however, most health insurance does not cover custodial expenses.
Custodial care covers assistance with basic daily activities such as bathing, dressing, eating, continence, toileting and transferring. These are non-medical supports that become necessary when someone can no longer manage these tasks independently.
As people age, many find these basic tasks harder to do without help. Long‑term care insurance can provide funds to hire and maintain the appropriate care, which supports independence for longer periods. People are also living longer after retirement — often 20 or 30 years — so planning ahead is important.
The best time to shop for coverage is often in your mid-forties, when insurers typically offer lower premiums and fewer health-related restrictions. Children sometimes purchase policies or supplemental coverage for aging parents. If coverage is not in place, options can be limited and costly; some applicants may qualify for special programs — see Guaranteed-issue and Long-Term Care — but not everyone will be eligible.
Care costs can be high and, depending on location and level of care, can exceed $75,000 per year for facility-based care. Paying out of pocket can quickly deplete savings, and many retirees find their assets reduced far sooner than they expected when covering long‑term care expenses directly.
Long‑term care insurance from a reputable company can help provide access to needed services at a predictable cost now and in the future. Buyers should review policy features carefully and compare benefit amounts, elimination periods, inflation protection, and whether the policy covers in‑home care as well as facility care.
After selecting an appropriate policy and confirming the terms, many people gain peace of mind knowing they have a plan for potential long‑term care needs.
Our professionals can help — talk to an agent.
Frequently Asked Questions
When should I buy long‑term care insurance?
Many advisors suggest buying in your 40s or early 50s when premiums are generally lower and you are more likely to qualify for coverage.
What triggers benefit payments under a long‑term care policy?
Policies usually pay when you are unable to perform a set number of activities of daily living or when a cognitive impairment requires supervision.
Does Medicare cover long‑term custodial care?
Original Medicare generally does not cover custodial long‑term care; it may cover short-term skilled care under specific conditions but not ongoing custodial support.
How can I compare different long‑term care policies?
Compare the daily or monthly benefit, elimination period, benefit period, inflation protection, and limitations or exclusions to find the best fit for your needs.