With the skyrocketing cost of long-term care, nursing homes, assisted-living facilities and home health care, many families are recognizing the importance of long-term care insurance. People in their late 50s and early 60s are the most common purchasers of long-term care insurance. However, those purchasers may find that the premiums on long-term care insurance policies are higher than expected or that coverage is completely unavailable to them due to a pre-existing condition. Unfortunately, trying to convince those in their 30s and 40s to pay up for a long-term care insurance policy that’s unlikely to be relied upon for decades, can be difficult unless they have already faced the challenge of providing for their own parents’ long-term care.
Typically those who do secure coverage earlier in life will not only pay lower premiums but will pay less over the lifetime of the policy, so it is something that families of all ages should consider as a part of their estate plan. For many families, long-term care insurance may not make sense if the premiums are insurmountable and Medicare or Medicaid may eventually pick up the tab. But for many others, who have a legacy that they wish to protect for future generations, it could be a sound investment.
A comprehensive, holistic legacy plan should include a discussion of whether or not long-term care insurance makes sense given the client’s facts and circumstances. An advisor experienced in long-term care is an important part of any advisory team.