Do you need long-term care insurance?

With healthcare costs rising and longer life expectancies, funding long-term care needs is an increasing concern for millions of people. The average annual cost of nursing home care rises every year.

 

People who would like to protect their assets, minimize dependence on family members and control how they receive nursing or home care, should carefully consider long-term care insurance. It is a highly individualized decision that requires people to look closely at multiple factors including their family health history, dependent relationships and personal financial situation.

 

When people are unable to perform activities of daily living - such as eating, dressing and bathing - long-term care insurance can pay for the services of nursing homes, assisted-living facilities and in-home caregivers. Importantly, long-term care insurance covers expenses for those diagnosed with a chronic illness such as Alzheimer's disease, Parkinson's disease, multiple sclerosis and diabetes.

 

Standard health insurance policies and the NHS rarely pay for long-term care expenses associated with these illnesses. The NHS provides limited long-term care benefits - only after a person's assets have been depleted.

 

People are living longer, but they often don't have the ability to take care of themselves as they reach the older ages. Because these costs can become prohibitively high, interest in long-term care insurance is increasing.

 

A major consideration for purchasing long-term care insurance, is whether individuals have assets they want to protect, as the substantial annual cost of long-term care can quickly deplete even a sizeable nest egg. On the other hand, if one's retirement savings are minimal or non-existent, he or she would likely qualify for NHS help in a very short period of time, significantly diminishing the need for long-term care insurance coverage.