What to consider when buying long-term care insurance

When to  buy your policy: The older you are, the more expensive the coverage. Buying coverage in your 50’s is definitely cheaper than buying it when you are 65 or older 

The duration of your coverage:  Think about how long you want your long-term-care insurance to last following a medical event. Some plans offer unlimited coverage, but you need to determine if that will be right for you. According to the Department of Health and Human Services, the average use of long-term-care services is three years.[1]

Inflation protection:  If you purchase long-term-care insurance in your late 50s, you may need the benefits 20 years down the road. Without increased coverage through an inflation-protection rider, your coverage is likely to pay for only a fraction of the care it would fund today.

Policies offer inflation protection in two forms: simple and compound inflation. Simple inflation takes the original benefit and increases it by a set dollar amount each year, while compound inflation protection uses the last year’s benefit as the base for calculation. 

Choose the right plan for you

Knowing the basics of what to look for in a long-term-care policy can help you as you compare plans. It’s important to consider your personal circumstances. If you buy a policy without carefully considering your situation, you may end up paying for more—or less—coverage than you ultimately require.

To learn more about your options, give us a call today.

[1] Based on the Department of Health and Human Services National Clearinghouse for Long-Term Care Information as of September 2012, “How much care will you need.”