No matter the type of insurance, an insurance policy is built to help protect you against the what-ifs of life. Unfortunately, no matter how thorough and deliberate we are in our planning, it’s impossible to account for every curveball life might have in store for us.

In that sense, long-term care policies are no different than auto insurance for your car or an umbrella policy for your property – they’re designed to provide usable funds for convalescent care that otherwise would come straight out of your estate.

Deciding whether or not to purchase a long-term care policy is rarely an obvious choice and is dependent on several factors. While premiums, benefits, and other provisions are crucial in ultimately making your decision, remember that a long-term care policy – just like other forms of insurance – is just as much about peace of mind as it is dollars and cents.

Premium Costs

Suffice it to say, the rumors you might’ve heard about the cost of a long-term care policy are likely true – they are one of the more expensive types of insurance you can purchase. Much of the high prices are due to the rate of inflation for health and convalescent care, often doubling the standard rate of inflation seen within the economy.

Although price guarantees and inflation protection can be purchased at an additional cost under certain circumstances, be certain to read the fine print to make sure you fully understand how those complicated mechanisms work and if they’re worth the extra expense to you.

Benefits

Just because you purchase a long-term care policy doesn’t mean you have a carte blanche over what type of facility or care it will cover. Once again, like other forms of insurance, different policies from different carriers are not necessarily created equally. If there are specific types of care you want to be covered under your policy, make sure it is a provision that is offered by any prospective carrier you research.

Play the Odds

While the underwriting process for a long-term care policy typically isn’t quite as intense and thorough as that of a life insurance policy, every carrier will still delve deep into your personal and family medical history to protect themselves with financially feasible premiums.

However, if there is indeed a history of degenerative diseases in your family – Alzheimer’s or ALS, for instance – investing in a long-term care policy, even with the higher premiums your history will create, might still make more financial sense in the long run. That is if you are even insurable!

As stated at the top, another significant factor in purchasing a long-term care policy cannot be found as a line item in your budget. It’s hard to place a value on a good night’s sleep and peace of mind, so depending on your priorities, weigh the tangibles with the intangibles to determine if a long-term care policy is appropriate for you.

Have questions about whether or not you should consider long-term care insurance or need help with your financial plan? We’re here to help! Simply click here or call (763) 445-2772 to schedule a complimentary consultation today!