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Long-Term Care Insurance Is Boring

| June 28, 2019
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Long Term Care Insurance can be boring to talk about. In fact, it's been voted as one of the least favorite topics to discuss when out with friends or family. However, when a life changing event occurs and you need care either at home or in a facility, LTC insurance now becomes the most interesting topic you should have addressed earlier.  So, let's get the boring out of the way right now with these 5 points you should know about the subject of Long-Term Care.

1. Long-Term Care Is Needed When You Become Impaired.

Long-Term care is typically needed when a person can no longer live independently and is in need of care.  A person may become mentally or physically compromised and they need help doing the things they do on a daily basis. For example, bathing, continence, dressing, eating, transferring or toileting.  This type of care is called custodial care.  Long term care insurance can alleviate the high costs associated with this care. 

2. Long-Term Care Can Be Provided at Home Or In A Facility

Most people believe you need to be in a nursing home to receive long-term care services. The good news is the majority of people receive care in the comfort of their home which is exactly where they want to be. In addition to your home, long term care services can be provided in an adult day care center, assisted living facility, or nursing home.

3. Medicare and Health insurance Do Not Pay for Long-Term Care.

There is a common misconception that Medicare and Health Insurance pay for long-term care or custodial care. This misunderstanding has prevented many to not secure a long-term policy prior to needing custodial care.  Medicare was originally designed to provide health insurance for people over the age of 65. Medicare does not pay for any custodial care. It only pays for short-term care when it is skilled and rehabilitative in nature. 

4. What Does A Long-Term Care Policy Cost?

The annual premium for a long-term care policy is based on the following choices:  the monthly benefit, the benefit period, inflation, and the elimination period. Your health and age are just as important in determining your premium. Everyone is different but annual premiums for a traditional LTC policy can start at $2,000 and go up from there.

It is important to work with a long-term care professional, who can create a customized long-term care plan that takes into consideration your financial resources and goals you want to accomplish.  

5. Secure Long-Term Care Insurance While You Are Healthy.

If you think waiting until you are older to consider long-term care insurance is the right choice, think again. The biggest obstacle in getting this coverage is your health!!  Once you have a chronic ailment such as diabetes you may not be able to qualify medically for this coverage.  You need to address this while you are healthy. 


Historically there has been one solution and that is traditional Long-Term Care Insurance. Like homeowners or car insurance, if you never use it, you lose your premium and there is no further benefit. If you are looking for solutions with additional guarantees there are now Hybrid or Asset Based Policies that offer a death benefit if long term care is never needed.  


Not everyone should consider this coverage.  It depends on your financial assets and what you are looking to accomplish.  According to the Department of Health and Humans services 7 in 10 people turning 65 will need some type of care in the future.  You need to ask yourself: if I were to need help how would my care affect my family and where would the money come from to pay for care.  It’s all about peace of mind.  Knowing you have a plan in place provides that comfort.

Having a good long term care plan is certainly part of protecting your financial well-being.  However, if you have minimal assets and income, it may not make sense to purchase a policy. Medicaid, will cover long-term care expenses if you qualify financially. On the other hand, for those with significant assets, it may make sense to self-fund your long-term care plan.  Consulting with a qualified specialist will help to determine which options are best for you.

Long-Term Care Insurance talk is boring, and you may never need it.  But if you do, the earlier you address the issue and determine what is best for you, the better off you will be if care is needed down the road.

Engage with the entire King Financial Network team on to see what other expert advice we can provide towards your financial well-being.

Linda Kubit is the Director of Insurance Planning at King Financial Network. With 28 years of experience, Linda provides personalized guidance on all aspects of life and long term care insurance. She is an advocate of protecting families against the risk of long term care. Learn more about Linda - watch her VIDEO BIO.

King Financial Network is an integrated, team-based network that takes a comprehensive, customized, and independent approach to guide you through Financial, Retirement, Tax, Insurance, and Estate Planning.

Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

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