Is long-term care insurance really worth it?

Long-term care insurance is a type of coverage that helps pay the expenses of long-term care as people age, from assisted living facilities, nursing homes and caretakers to medical equipment and adult daycare services. Like any insurance, there is a level of uncertainty about whether it will repay the buyer in benefits. Given that nearly everyone will need some kind of long-term care in their life, this type of insurance is worth it.

Pros of long-term care insurance

The insurance policy will pay rather than your savings, preserving that for your family.
The insurance premiums are reasonable, assuming you purchase the policy before the age of 60.
The peace of mind that comes with a long-term care policy is invaluable.
Long-term care insurance is the best plan to cover the costs of aging, rather than relying on the government or family and friends.

Cons of long-term care insurance

The insurance policy can be expensive. The optimal age to purchase a policy is 60, later than that the monthly payment may increase substantially.
Insurance companies can raise the premium since the cost of long-term care continues to increase.
You may not need it at all. Life is unpredictable but the extra layer of protection is there in case you do.
You might be better off saving and investing the money rather than spending it on insurance premiums. But there is no assurance that this money would be used for your long-term care in the future.

Even if you just have a few small health conditions, it might be difficult to get coverage after a certain point. Insurance companies are all about dealing with risk. And if they deem you to be too risky, you’ll potentially be left without coverage.

Carefully consider your options. Evaluate your health and financial situation to give yourself the best picture for preparing for your care in old age. Get more information about long-term care insurance here.