What's Long Term Care?

Long-term care is day-to-day care that a patient (usually over age 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age.

The need for long-term care goes up gradually as an individual ages and needs more assistance with daily living. For a segment of the population, long-term care insurance is a good idea. However, it should not cause financial hardship and force you to put off other financial needs. A long-term care insurance policy is only for people with large assets that they want to preserve for family members or for those who want to assure independence and not burden family members with nursing home bills. One should not buy long-term care insurance if the only source of income is social security, or if paying utilities, food, or Medicare already stretches a budget.

When should I buy a long term care policy?

When purchasing long term care insurance, your age is a main factor in determining its cost. The younger you are when you get the policy, the less money your premiums will be. Of course, you also will be paying those premiums for a longer period of time before taking any benefits.

A rule of thumb in buying long term care insurance is between ages 50 and 55, according to the American Health Care Association (AHCA), a federation of 50 state health organizations representing assisted living, nursing facility, long term care, and subacute care providers.

Related Article: Do I Need LTC Insurance? >>