If the COVID-19 pandemic taught us anything, it’s that health crises, though difficult to predict, are inevitable. This is true on the personal front as well as in the society at large. We can’t know what health issues await us, but it’s pretty certain that if we live long enough, we’ll need some form of long-term care — for ourselves or for members of our families. 



To ensure we aren’t caught without the needed resources in the event of a catastrophic, long-term health event, it’s important to consider how such expenses will be paid for now, before the need arises. One option is long-term care (LTC) insurance. 

LTC insurance policies help pay for the cost of long-term nursing care and assistance with activities of daily living (ADLs), such as eating and bathing. Many policies cover care provided in the home or at an assisted living facility or nursing home, although some policies restrict coverage to only licensed facilities. Without this coverage, you’d likely need to pay these bills out of pocket. 

Medicare or health insurance policies generally cover such expenses only if they’re temporary — that is, during a period over which you’re continuing to improve, such as recovering from surgery or a stroke. Once you’ve plateaued and are unlikely to improve further, health insurance or Medicare coverage typically ends. 

That’s when LTC insurance may take over. But you need to balance the value of LTC insurance benefits with the cost of premiums, which can run several thousand dollars annually. 

Whether LTC insurance is right for you will depend on a variety of factors, such as your net worth and your estate planning goals. If you’ve built up substantial savings and investments, you may prefer to rely on them as a potential source of LTC funding rather than paying premiums for insurance you might never use.

If you’ve socked away less and also want to have something left for your heirs after you’re gone, LTC insurance might be a good solution. But it will be effective only if your premiums are reasonable. 

If you determine LTC insurance may be right for you, keep in mind that the younger you are when you purchase a policy, the lower the premiums typically will be. And, the chance of being declined for a policy increases with age. Having certain health conditions, such as Parkinson’s disease, can make it more difficult, or impossible, for you to obtain an LTC policy. If you can still get coverage, it likely will be much more expensive.

So, buying earlier in life may make sense. But you must keep in mind that you’ll potentially be paying premiums over a much longer period. You can often trim premium costs by choosing a shorter benefit period or a longer elimination period.

As you see from this brief summary, LTC insurance is complex and there are many factors to consider. It’s important that any policy you purchase fits into your financial plan and doesn’t drain resources you’ll need for other purposes. Your financial advisor can help you determine the best policy for your specific needs.