Over the years, the cost of nursing home and long-term care costs have risen and continues to surge. Studies reveal 69% of retiring Americans will need some sort of long-term care during their life.¹ And if there’s a single unsolved problem in retirement plans, it’s what to do when it comes to covering long-term care costs. For many who can no longer care for themselves afford long-term care, long-term care insurance (LTCI) has become the solution.

When it comes to choosing a LTCI policy, how do you determine which is right for you? Here are some factors to consider:

• Coverage – LTCI policies may cover nursing home care, home health care, assisted living, adult day care, or a combination of these. The more comprehensive a policy is, the better as it’d provide you with more flexibility.
• Waiting Period – This is the period of time before benefits start kicking in, which can be between 0 and 90 days. So, think about what you can cover and what you can’t and choose a time period that’s feasible.
• Daily Benefit – This is the amount the insurance pays per pay towards your long-term care expenses. Calculate the costs of your long-term care services to determine how much coverage you’ll need. Otherwise, you’ll have to cover any additional costs.
• Benefit Period – When purchasing an LTCI policy, you’ll need to choose how long you’d want your coverage to last. These plans come with two-year, three-year, five-year, and unlimited benefits periods.

Insurance is there to protect you in the event something happens. And an LTCI policy is no different–there’s value in being protected.

 

 

¹ https://www.fool.com/retirement/2018/09/02/5-long-term-care-stats-that-will-blow-you-away.aspx

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