Do I Really Need Long-Term Care Insurance?

 As an attorney certified in elder law planning, I am often asked by clients if they should buy long-term care insurance. The answer is more complicated than you might think. Before getting to the answer, it’s important to identify a myth about long-term care insurance. ​

Myth: Long-term care insurance will cover the full cost of an individual’s long-term care. Truth: Long-term care insurance does not eliminate the out-of-pocket expenses associated with long-term care. It can, however, help to defray costs – to slow the “burn rate” at which family and household assets are spent to pay for care.

​For some people, long-term care insurance is a good way to preserve financial assets. But long-term care insurance is not for everyone. To determine if long-term care insurance is right for you and your family, it’s important that you consider several key questions: What is the age of the individual who might need long-term care? What type of care would that individual likely need and for how long? The answers to these questions will determine the cost of long-term care insurance.

Next, it’s important to ask: 3. What will be the financial benefit of the insurance? And, finally, you need to ask: 4. With a 5-year asset protection plan – to preserve assets to pay for long-term care – would the plan provide the most benefit to you and your family with or without the long-term care insurance? At Porzio Planning, we work with clients to conduct a rigorous analysis of their estate planning and financial needs. We partner with insurance agents and financial planners to determine the cost of insurance and to determine whether the benefit of the insurance will justify its cost. Most importantly, we work with you to create an asset protection plan – so you know how best to protect your assets to meet the needs both of an individual who may need long-term care as well as the rest of your family. This post is for general informational purposes only.

​The specifics of your situation will determine whether long-term care insurance is right for you. For a video presentation of this information, please visit Do I Really Need Long-Term Care Insurance? For more detailed information, please visit porzioplanning.com or contact us for a free 20 minute telephone consultation.

By Crystal West Edwards, Esq., CELA
Porzio Bromberg & Newman P.C.