This blog post is designed to provide general information on the subjects covered. It is not, however, intended to provide specific estate planning, insurance, tax or legal advice. Please note that LTC Consumer and its representatives do not give financial planning, tax or legal advice. You are encouraged to consult with your tax advisor or attorney concerning your own situation.

Is Long Term Care Insurance Worth It?

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Am I ever going to use it? Is future coverage worth the premiums I pay now? Is the cost of long term care insurance worth it?

These are common questions people wonder when considering if long term care insurance is worth it. Buying long term care coverage may depend on if you have the income to pay for it and assets to protect.

The following information can help you understand the value of long term care insurance so you can know if it’s right for you.

What Does Long Term Care Insurance Cover?

Long term care insurance (LTCI) pays for home health care, adult day health care, assisted living, and nursing home care. You’re eligible to receive a benefit when you are unable to perform two of out six activities of daily living (eating, bathing, dressing, transferring, toileting, and continence), or if you have a cognitive impairment such as Alzheimer’s or dementia.

Long term care insurance may also cover home modifications such as ramps and grab bars. Insureds and their families also receive dedicated case managers to answer questions and offer placement assistance.

How Does It Protect Me and My Family?

When you cover your risk against long term care, you’re not only protecting yourself – you’re protecting your loved ones.

The cost of care is expensive today and will continue to grow with each passing year. Buying long term care insurance now while you’re young and healthy offers peace of mind knowing your income and assets are protected.

LTCI protects your income and assets against the rising cost of care. With cognitive impairments such as Alzheimer’s and dementia increasing, facility stays can extend to three, five, even ten years long. Paying for care for a few years to a decade can wipe out your savings and be a financial burden on your family.

In addition, with LTCI, the dedicated case manager assigned to you can offer assistance and support during a challenging and emotional time for families.  It allows your family to manage your care, not provide it.

How Much Does It Cost to Pay for Care?

The cost of care varies based on where you live and where you plan to retire. This online cost of care map will show you the cost for home care, assisted living, and nursing home care in your state.

Keep in mind, these rates represent the current cost of care. Inflation increases the rates for home health care by 1% and assisted living by 4% on a five-year average. It’s important to remember this when considering insurance coverage levels and inflation protection options.

How Much Does Long Term Care Insurance Cost?

LTCI premiums are based on your age and health when you buy it. See the table below for the current average Michigan premiums rates* for individuals and couples with standard health ratings.

Monthly LTCI Premium for:

Age Single Male Single Female Married Couple
45 $173.49 $262.27 $341.59
50 $185.65 $283.98 $370.11
55 $199.72 $306.64 $404.91
60 $233.41 $360.38 $476.93
65 $297.37 $459.72 $612.36

*Rates reflect average premiums based on the following carrier products: Mutual of Omaha Secure Solutions, Transamerica TransCare III, Genworth Privileged Choice Flex III-Enhanced, and John Hancock Performance LTC.  $6,000 Monthly Benefit, 3 Year Benefit Period, 90 Day Elimination Period, 3% Compound Inflation

Curious what LTCI costs for you? Get an instant quote now.

LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.

 

 

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