Long Term Care – Should You Plan Now?

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by Elle Martinez · 4 comments

As we look ahead for long term goals, every once in awhile I think about possible hiccups and problems we may encounter. I’ve been reading about baby boomers getting care and support from their children, which can be difficult as they handle their own immediate family’s needs.

As parents we don’t want to put our daughter in a tough spot like that if possible. To prepare, we’ll looking at our options, including insurance.

What is Long Term Care?

Basically long-term care insurance covers  expenses such as assisted living, home care, respite care, hospice care, and nursing home costs that health insurance doesn’t.

U.S. News recently reported that long term services and support is quickly becoming an expensive problem based on a report from the Congressional Research Service, the article cited that $295 billion was spent on long term care in 2009. Another number for us to consider, Fidelity gives an estimate of $225,000 to take care of medical costs while in retirement.

When Should You Buy Long Term Care Insurance?

Running the numbers before you get started can help you get an idea of what policy you need.  Buying insurance for long term care can be a smart move for couples to look into as they plan their retirement.

If they are in good health, they are more likely get a good deal on premiums.

How Much Does Insurance Costs for Long Term Care?

You’ll want to shop around to find coverage that fits you and premiums that you can afford. Financial Samurai got some LTC quotes that offers coverage for 4 years and for those in their 40s an annual preimum was around $1,300 or $108/month.

Shop around to get the best deal. There are several companies you can check, including Genworth. Whatever insurance company you choose, make sure it’s reputable and has a great rating.

You may also consider where you live should you need long term care. U.S. News lists the 10 Most Affordable Cities as:

  • Atlanta, GA
  • Chicago, IL
  • Dallas, TX
  • Detroit, MI
  • Houston, TX
  • Las Vegas, NV
  • Miami, FL
  • San Antonio, TX
  • St. Louis, MO

Thoughts on Long Term Care

Right now we have to think about all of our insurance needs, not just long term care. I’d like to hear from you about your insurance plans. Have you signed up to get insurance for long term care?

Disclosure: Posts includes information sourced from Genworth Financial

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About Elle Martinez
Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..

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  • http://twitter.com/familymoneyblog John Preston

    I’ve been in the debate about LTC insurance for my parents. Since me and my siblings don’t have much financial resources, I’ve been mulling whether this is a smart option for us to take care of our family members in what way we can.

    • http://couplemoney.com Elle Martinez

      From what I’ve read, it looks to be a fairly new insurance option. Please let me know how it goes

  • PawPrint53

    We purchased LTC insurance for my husband when he was in his late 50s I cannot get LTC, but we wanted to make sure at least one of us was covered. The cost with the options we chose is $2,000 per year. There are a dizzying array of options. Be sure and go with a reputable firm.

  • http://creditshout.com/ Amanda

    The top 10 most affordable cities is really interesting! Seem like a few good places to retire besides Detroit and Chicago (don’t like the cold). Thanks for sharing this insurance option. My parents are both in their 50s (early–Mom just turned 50 in December) but it’s something to think about.

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