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Is It Really Worth It To Buy Long-Term Care Insurance?


People buy insurance hoping that they never have to use it.  Most of the time, we do not put very much thought into our insurance buying decisions.  You buy car insurance because it is against the law to drive without it.  If your employer offers health insurance, you sign up for it when you start working, and then you simply click to renew your policy every year.  Some types of insurance make the difference between a temporary disruption and a financial catastrophe, however.  For example, not having flood insurance or homeowners’ insurance is very risky for Florida homeowners, and tenants should buy renter’s insurance, but most people do not think about these matters unless a hurricane strikes.  Long-term care insurance is another type of optional insurance that can ensure your family’s financial stability.  The best time to buy long-term care insurance is when you are still healthy, before you need to use it.  An Orlando estate planning lawyer can help you make decisions about long-term care insurance and other matters related to planning for your retirement.

Long-Term Care Insurance Best Practices

Long-term care insurance pays for your residency and treatment at assisted living facilities and nursing homes; some long-term care insurance policies also cover home health aide services.  The younger you are when you start paying premiums on long-term care insurance, the less you will pay per month, much like with life insurance.  Don’t try to game the system where you hold off buying long-term care insurance until you are almost at the point where you need to use it but young enough where the insurance company will charge you a reasonable rate.  If you buy long-term insurance and spend even a short time in an assisted living facility, you will get a return on your investment.  One month in an assisted living facility costs about $9,000, which is more than four years’ worth of premiums if you take out the policy when you are about 55 years old.  Even if you don’t move to an assisted living facility until you are 80, the policy will pay for itself in a matter of months.

Married couples get an even better value for long-term care insurance than single people do.  If the need arises, the insurance pays for both spouses to receive care at separate facilities.  Premiums for a couple are less than double the premiums for a single person.

If Not Long-Term Care Insurance, Then What?

If you don’t buy long-term care insurance, your next best hope is to qualify for Medicaid.  This may require you to spend down your assets.  You should start doing this at least five years before you need to move to a nursing home, so Medicaid will not accuse you of trying to game the system.

Contact Gierach and Gierach About Making Long-Term Care Affordable

An estate planning lawyer can help you free up money in your budget to start paying for long-term care insurance while you are still healthy.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.



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