Who Can Benefit Most from Long Term Care Insurance?

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More than two-thirds of Americans over age 65 need long-term care. So most people can benefit from long term care insurance.

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Imagine knowing that a storm is going to hit your neighborhood, destroying about 70% of the homes, but also knowing that only about 11% of your neighbors have homeowner’s insurance. How many of your neighbors will be struggling financially as a result of the storm?

Although the majority of homeowners have insurance, there is a figurative storm that can have a similar financial impact on your neighbors and is known as need for long-term care.

Long-term care services are a common need among retirees, but only about 11 percent of American adults have long-term care insurance, according to KFF. Only 14 percent of those most likely to need this care — people age 65 and older — actually have this type of coverage. Should you be one of them? And who benefits the most long-term care insurance?

Get long-term care insurance now to protect yourself financially during retirement.

Who Can Benefit Most from Long Term Care Insurance?

“The person who is likely to need long-term care in the future can benefit the most from long-term care insurance,” explains Patrick Simasko, elder law attorney and financial advisor at Simasko Law. “It may sound cheeky, but it’s true.”

With this in mind, it is important to note that most people will need long-term care. In fact, seven out of 10 Americans age 65 and older will need some form of supplemental care during their lifetime.

“The reality is that many of us will need long-term care in the future,” Simasco says.

But that’s not the only reason you might want to get long-term care insurance. Here are a few other reasons to consider:

Long-term care services can be expensive

Long-term care services usually come with a hefty price tag. According to the Genworth Care Cost Study, here’s what you can expect to pay for long-term care services by 2025:

  • Home care: You’ll pay between $5,579 and $5,794 on average per month depending on the type of home care you need.
  • Community and Assisted Living: You’ll pay an average of between $1,902 and $5,065 per month depending on whether you need adult daycare while your caregiver works or you need to move into an assisted living community.
  • Nursing home: You’ll pay between $8,901 and $10,168 on average per month depending on whether you want semi-private or private room in a nursing home.

Long-term care insurance can cover other costs as well. For example, your insurance may pay for the installation of a ramp that leads up to your front door if you develop a condition that involves mobility problems.

It’s also worth mentioning that long-term care costs are rising. So the more time there is between now and the time you’re likely to need long-term care, the more you can expect to pay for it.

Explore your long-term care insurance options today to prepare for the cost of care.

You don’t need to buy a use-it-or-lose-it policy.

In the past, long-term care insurance was often a use-it-or-lose-it proposition. However, this is no longer the case.

“Insurance companies have created a hybrid policy,” Simasco says. “Life insurance that has a death benefit of a certain amount, say $200,000, but if you need it for long-term care, a large portion of the death benefit can be used.” So if you need it, it’s available, but if you don’t need it, the death benefit goes to your beneficiaries.”

So if you purchase hybrid long-term care insurance, you don’t necessarily have to bet on the idea that you’ll need care in the future. Instead, you leave something behind for your loved ones while ensuring you have financial protection against potential long-term caregiving difficulties in the future.

Long-term care insurance isn’t just for you

When you buy a long-term care insurance policy, you’re not just buying protection for you. You also protect your loved ones. This is how:

  • Financial protection: If you don’t plan for long-term care costs, your loved ones may find it difficult to cover these costs for you. Long-term care insurance can, too pay your family’s caregivers to provide for your care.
  • Property protection: You may decide to self-fund your long-term care through your estate. However, the cost of doing so can easily reach hundreds of thousands of dollars. Unless you have a large estate, these expenses can wipe out anything of monetary value you plan to leave for your loved ones.
  • Emotional protection: Long-term care insurance can also protect your family from the emotional burden of watching you struggle to afford the care you need.

Protect your loved ones with the right long-term care insurance policy today.

The bottom row

Many people could benefit from long-term care insurance. And the simple fact is, you’ll never know for sure if you’ll need care until it’s too late to plan for it. Since nearly seven out of 10 Americans need long-term care services after age 65, the odds of benefiting from long-term care insurance are greater than the odds of not.

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