When should you purchase long-term care insurance?

long term care insurance

If you’re caring for a loved one, you may have seen first-hand how invaluable long-term care insurance can be and may be wondering if and when you should purchase it for yourself. 

Long-term care insurance provides financial protection to help cover the cost of long-term care as you age or in the event of a disability or chronic condition. On average, women need long-term care for 3.7 years while men need long-term care for 2.2 years. 

Why buy long-term care insurance

Deciding whether to choose long-term care insurance is a personal one. You’ll need to consider your finances as well as consider the type of lifestyle you want as an aging adult.

The average cost of home care or care in an assisted living facility is about $50,000 per year. The average cost of having a private room in a nursing home is more than $100,000 per year.

Long-term care is not covered by regular health insurance. So, you typically have three choices. Use long-term care insurance, pay for it out of pocket, or use Medicaid if you are low income or have exhausted most of your savings. Medicaid, however, does not cover home care in all states and not all facilities accept Medicaid payments.

Many of our clients at PHC have long-term care insurance plans that they bought when they were younger. Some of them chose to buy this coverage in order to protect their retirement savings or to avoid being a financial burden on their family. Many also bought it in order to ensure they have the freedom to stay in their home as they aged or have high-quality care in a facility.

PHC’s recommendation: Saturday Insurance

If you are considering purchasing long-term insurance, we highly recommend Saturday Insurance. Saturday Insurance is a licensed, independent insurance agency that makes it easy to get expert advice and shop all the top insurers from the comfort of your home. 

It’s a company whose values align with our own, and they are on a mission to make insurance simple, transparent, and affordable for everyone. Like Private Home Care, Saturday Insurance provides their clients with a customized experience by providing plans that are tailored to what each client needs.

When to Purchase Long-Term Care Insurance
The best time to buy long-term care insurance is different for each person. Many financial advisors recommend buying it in your 50s or 60s. You have to buy long-term insurance before you actually need it. If you wait too long, or have serious health issues, you may not be able to get long-term insurance at all. Another thing to keep in mind is that the younger you are when you buy the insurance, the lower your premiums will be.

Saturday Insurance offers some tips on how to save and fit long-term care insurance into your retirement budget on their blog

Disclaimer: Please note that Saturday Insurance is an affiliate to Private Home Care, and at no additional cost to you, PHC receives a referral credit when you use the affiliate link. PHC is not an insurance company and does not 

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