Is Long-Term Care Insurance Expensive?

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Answer: Not having this long-term care coverage can be far more expensive than having it.


Life is unpredictable.

You cannot know whether you will die young or old.

There is no predicting how quickly your body will fail as you age.

In short, there are no certainties when it comes to the aging process.

According to a recent The Motley Fool article titled “75% of Older Americans Risk This Major Expense in the Future,” uncertainties should encourage rather than discourage preparing for potentially catastrophic scenarios.

Long-Term care insurance can save you money in retirement.
Long-term care insurance should be a priority.

Not everyone will need long-term care as they age.

However, nearly 70 percents of seniors age 65 or older require long-term care at some point.

The odds are unfavorable.

And the costs are high.

I have clients in Overland Park paying $8,000 per month for one spouse in a “memory care” facility.

Despite this unpleasant reality, nearly 75 percent of Americans entering retirement have no long-term care insurance in place.

What does this mean?

Those individuals will shoulder the financial burden of care with their own  financial resources or with help from their children.


Why do people neglect getting insurance?

There can be sticker shock.

Long-term care plans are not cheap; however, they are far less expensive than the alternative of paying for care when it comes.

When should you get this insurance?

Ideally, you should apply for insurance in your mid-50s.

This is typically the sweet spot where you will both qualify for insurance and the most discounts.

Gretchen and I secured our policies when we were age 49.

If you wait too long, the costs will increase or you run the risk of not qualifying for coverage.

As you shop, what should you consider?

Look at any coverage limitations in the policy and the length of your policy.

You should have coverage for at least two-years of long-term care in your local area.

Be sure to evaluate any waiting periods, maximum daily, benefits, and items excluded from coverage.

Consulting an experienced estate planning attorney or financial advisor can help you pick the right plan for you.

The most expensive plan is not always the best.

But, then again, the most expensive plan is not having long-term care insurance.

If you are in your early 50s, your time is ticking.

Secure a long-term care insurance policy before it is too late.

Genworth conducts an excellent in-depth state-by-state annual survey of long-term care costs.

Reference: Motley Fool (September 23, 2019) “75% of Older Americans Risk This Major Expense in the Future”

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