Planning to Pay for Care: Is Long-Term Care Insurance the Right Choice?

It’s no secret that the cost of long-term care is high, and costs have been rising for several years. The rising costs are an obstacle, but many seniors find no way to avoid the eventual need for long-term care services. In fact, 75 percent of all people over the age of 65 will eventually need long-term care, according to a study by Mutual of Omaha.

Even more disheartening are other long-term care statistics: The average cost of a one-year stay in a skilled nursing community, according to sources like AARP and CNN Money, are estimated between $50,000 and $80,000. It’s no surprise, then, that many seniors spend their retirement savings within a year or two of a long-term care need arising.

For these reasons, planning for long-term care at a younger age is essential. Long-term care insurance is one option to ensure that your care needs will be met as you grow older. A typical long-term care insurance policy covers not only nursing home services, but home healthcare, assisted living communities, respite care, and even services such as adult day care and hospice care.

But knowing whether long-term care insurance is right for you, what tax implications exist, and what your policy should include aren’t easy questions to answer. Our guide to long-term care insurance, “Long-Term Insurance: Planning for Your Future,” outlines the basics of long-term care insurance and how these policies work to offer financial protection and ensure that you or your loved ones will have access to the care you need as you grow older.

For more information about the costs of long-term care, how long-term care insurance works, consumer protections, and how to determine if long-term care insurance is right for you, read our comprehensive article here.

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