Should I Buy Long-term Care Insurance?

Many people are interested in long-term care insurance to pay for a stay in a nursing home or other long-term care services. However, long-term care insurance is not for everyone. For some individuals, long-term care insurance is an affordable and attractive form of insurance. For others, the cost is too high and the benefits are insufficient. The purchase of long-term care insurance should not cause a financial hardship by making you neglect other more pressing financial needs. Each person must examine his or her needs and resources to decide whether long-term care insurance is appropriate.

Whether you should buy long-term care insurance will depend on your age, financial status (including your assets and annual income), health, marital status, and overall retirement objectives. For example, if your only source of income is a minimum Social Security benefit or Supplemental Security Income (SSI), or if your assets and income make you close to Medicaid eligibility you should carefully consider whether you can afford a long-term care, nursing home, or home health care policy. It makes no sense to buy a policy if you cannot afford to pay the premiums now or in the future.

Remember, if you have existing health problems that are likely to result in the need for long-term care, such as Alzheimer's disease, you will probably not qualify for a policy.

A Long-Term Care Personal Worksheet is available in the Guide to Long-Term Care Insurance (oci.wi.gov/pub_list/pi-047.htm) to assist you in identifying questions you may want to ask yourself.