Long term care insurance is not right for everyone

While you may think that I would promote long term care insurance for everyone, that is not the case. If you have limited assets (typically less than $50,000-75,000) or if you are on a very limited income, then long term care insurance may not be appropriate for you. The reason is that if you don't have assets to protect and something happens to you where you need care in a nursing home, then you will quickly be eligible for Medicaid. If you are on a more limited income, then long term care insurance may not be affordable for you. Premiums can get to be expensive depending upon your age when you take it out and the coverage you get. If the premiums will put undue stress on your budget, then I would not recommend it for you.

Some people are concerned that once they retire, they may not be able to afford the premiums. There is no problem while they are working, but what about once they get on a fixed income. That is where a long term care specialist can help out. A specialist can help you determine if it will still be affordable. One source of income you may not be considering is the interest on your savings or investments. If that is being reinvested back into your savings or assets and you are not using it to live off of, then you may consider using it to pay your long term care premiums, thus protecting ALL your assets.

It is important when looking at long term care insurance to work with a specialist who has been in the business a while and understands these issues and can help you work through them.