Does purchasing long-term care insurance make sense?


It’s a frequently asked question. For some, the thought of sky-high bills and burdened family members is enough to make them purchase a long-term care plan. But others don’t want it because they don’t think they’ll need it or they’re not willing to pay the high premium.

Regardless of which camp you’re in, here are 5 surprising things you should know about long-term care (and how it could affect your nest egg later on in life).


1. Nearly Everyone Will Need Long-Term Care In Their Lifetime

Nearly 70% of people turning 65 today will need long-term care in their remaining years. It’s estimated that 14% will need care for 5+ years, while the average person will need it for one to three years. It’s important to know that we’ll likely all need long-term care at some point.


2. Medicare Typically Doesn’t Pay For Long-Term Care

It may shock you to know that Medicare doesn’t cover typical long-term care expenses. It covers acute care expenses like doctors’ visits, prescription drugs, and hospital stays, but it doesn’t pay for daily, personal care needs such as bathing, feeding, getting dressed, and supervising.


3. It’s Difficult To Pay For Rising Long-Term Care Expenses Without Insurance

Did you know the average monthly cost for an in-home health aid is $4,290? Assisted living facilities cost $4,051 a month on average, while a private room in a nursing home is around $8,517. With costs this high, it’s no wonder that long-term care expenses often result in financial plan failures for 32% of households with a $1 million net worth.


4. Long-Term Care Insurance Covers More Than You Think

Many people think long-term care insurance is for nursing homes only, but there’s way more to it than that.This insurance also covers home health aides, assisted living facilities, retirement communities, and more. It even pays for professional help should you need assistance eating, showering, getting dressed, and using the bathroom.

5. Women Need Long-Term Care Insurance More Than Men

Women can expect to have higher long-term care costs than men simply because they live longer. When a husband is sick, for example, the wife often steps up to care for him until his passing. When the wife finds herself in the same situation years later, she typically doesn’t have a spouse to offer the same care. As a result, this burden falls on children or extended family members, which is where long-term care insurance really comes in handy.



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