Why should I buy long-term care insurance?
Costs for long-term care can be significant, and statistics show that of 9.3 million Americans receiving assistance with activities of daily living or instrumental activities of daily living, 77% have been receiving care for more than one year and of that number, 29% have been receiving care for more than 5 years.1
By purchasing long-term care insurance, you accomplish four key objectives:
- You provide yourself with greater control over how and where you will receive care. You are not limited by the options available through Medicaid.
- You reduce your dependency on family members, and avoid becoming a burden to them.
- You preserve your assets – very important if you will recover from this disability, if you have a surviving spouse, or if you want to leave a legacy to your heirs.
- You increase the likelihood that all of your needs for assistance will be met. A government study found that “lacking the necessary assistance with ADLs, approximately one half of those in need experienced a serious negative consequence such as burns from bath water, weight loss, or being chair- or bed-bound.” 2
Therefore, unless you have a net worth in excess of $5 million, chances are you should buy long-term care insurance coverage. Even individuals with net worth in excess of $5 million may want to purchase LTC insurance, if any of the objectives listed above are important to them.