April 01st - 3 minutes to read

Should I Invest in Long-Term Care Insurance?

Consider these factors when deciding if LTC insurance is right for you.

a couple purchasing long term care insurance
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One part of estate planning that often gets overlooked is whether or not you should invest in long-term care insurance. Whether you’re planning for your own future or assisting a loved one, be sure to consider the following factors in your decision.

What Does Long-Term Care Insurance Cover?

Long-term care insurance offers financial support to people who require long-term care (LTC) services when they can no longer perform daily activities independently. Unlike health insurance, which primarily covers medical expenses like doctor visits and hospital stays, LTC insurance covers the costs of nursing homes, assisted living facilities, personal care aids, and other support services needed for everyday tasks.

Deciding If You Should Buy Long-Term Care Insurance: 5 Considerations

While purchasing long-term care insurance can be beneficial, it’s important to acknowledge that it’s not the right fit for everyone. Before you purchase it, consider the following factors.

1. Cost

It’s essential to make sure your budget can fit the cost of a long-term care policy. Long-term care insurance premiums vary based on a multitude of factors, like your insurance company, coverage amount, age, and gender.

2. Existing Insurance

Find out if your existing insurance plans, including health insurance and life insurance policies, cover long-term care. If they do, you may not find it necessary to sign up for an additional plan. However, if they don’t, purchasing long-term care insurance can be a smart move to fill these gaps in coverage.

2. Age

Age plays a significant role in determining eligibility for long-term care insurance and the cost of premiums. If you purchase a policy when you’re younger, you’re generally considered to be at a lower risk of needing services and may be able to secure lower premiums. On the other hand, if you wait too long to purchase coverage, you may face higher premiums or even disqualification from coverage.

3. Health

Your current health status can also impact your eligibility for long-term care insurance and the cost of premiums. If you’re in good health, you’re more likely to qualify for coverage and may benefit from lower premiums. However, if you have pre-existing health conditions, you may experience difficulty obtaining coverage, or you may end up paying higher premiums.

4. Family History

If you have a family history of chronic illnesses or disabilities that require long-term care, it’s possible you may need similar support in the future. Long-term care insurance can help you protect yourself financially from the potential expenses associated with these conditions and give you the peace of mind that you’re prepared for whatever the future may bring.

Estate Planning in Worthington, OH

Deciding whether or not to purchase long-term care insurance all comes down to weighing the benefits against the costs and determining what makes sense for your personal situation. If you’re still unsure whether it’s right for you, Royal Oak Financial Group is here to help. Our financial advisors specialize in estate planning and can help guide you toward the best decision for your financial future. Contact us today to learn more.