One of the more difficult retirement planning decisions are whether or not to buy long-term care insurance and, if so, at what age to purchase it. Long-term care planning is usually the one that is most overlooked. Most people do not picture themselves as old and needing care with daily activities, so long-term care planning is put on the back burner. In comparison, life insurance is usually purchased (at a young age), just in case of death in order to protect their families.
Long-Term care insurance hasn’t been around as long a life insurance, but plays an important part in protecting families in a variety of ways. Having a long-term care plan in place by purchasing long-term care insurance, gives you the ability to choose where and how you receive care. Staying in your home with the assistance of outside help will be paid for as well as receiving care in a variety of settings. You won’t be a burden on your family. Your family will remain what they should be, family not caregivers. And your assets will be protected.
Of course, the ideal time to purchase long-term care insurance would be right before you know that you will be needing care. This however, isn’t good planning because right before you know will be needing care, you probably will not qualify for this type of insurance. Compare this to calling your insurance agent and requesting homeowners insurance when you are running out of your house because it’s on fire. Sounds silly, right.
At this time in your life, you are younger and healthier than you will be tomorrow. It is important to set a budget that is comfortable and affordable and know that you will be paying this premium for many, many years. The advantage of acting soon than later is that it will only get more expensive as you age and the companies will introduce new policies that will cost more than the policies available today.