Is Long-Term Care Insurance Right for You?

 With the yearly cost of a semi-private room in a nursing home in Boise, Idaho averaging over $57,000 more and more Idahoans are considering the purchase of Long-Term Care Insurance (LTCI).  Purchasing LTCI is a big financial decision for a person and it is not right for everyone.  Too many people have made the mistake of buying LTCI before truly evaluating if it was right for them.  They come to find out that they can’t afford the premiums and it doesn’t fit their retirement goals.  A person should first evaluate the need for LTCI and make sure it is going to benefit them in the future and not become a financial mistake. 

When evaluating the need for LTCI you should consider:

l      Your Age:  Are you at the age that purchasing LTCI makes sense?  Remember the younger you are the less expensive LTCI is and the older you are the more expensive it is.

l      Your Health Status:  What is your current health?  Do you have a family history of disease or illness?  Have others in your family needed or used Long-Term Care services?

l      Overall retirement goals:  Does LTCI fit into your retirement goals?

l      Income:  How much is your yearly income?  Will it be affected by retirement or something else in the future?  How much money do you have available for LTCI with out affecting your way of life. 

l      Assets:  What assets do you have? Ex. Homes, 401-k, Retirement, Property, ect.  Do you want to liquidate these items for Long-Term Care costs or protect them for your heirs?

 Long-Term Care Insurance Should Not Be Considered If…

  Ø      You can’t afford the premium.

Ø      You have limited assets. 

Ø      Your only source of income is Social Security or Supplemental Security Income.

Ø      You have trouble paying your bills.

Ø      You’re on Medicaid.

 Long-Term Care Insurance Should Be Considered if… 

Ø      You have significant assets and income.

Ø      You want to protect some of your assets and income for your heirs.

Ø      You want to stay independent of the support of others.

Ø      You can pay premiums without financial difficulty.

Look for future articles on Long-Term Care Insurance in upcoming Focus Basics.

For further information or questions you can contact Lyle Hansen, University of Idaho Extension Educator in Jerome County at 324-7578 or lhansen@uidaho.edu   

Long-Term Care Insurance (LTCI) is insurance that pays for medical care in the event of a lengthy disability.  LTCI has been around since the 80’s and has gone through a lot of changes. 

With the rising costs of Long-Term Care it is important to educate yourself about the issues and decide how you will handle the possibility of needing Long-Term Care.

Long-Term Care Insurance is not right for everyone and it is important that you determine if it is right for you.

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