Why People Buy Long-Term Care Insurance

During pre-retirement planning, many people purchase Long-term care insurance to assure their principle retirement funds will not be invaded.

Planning with insurance can allow retirees to freely enjoy retirement without being concerned that a need for long-term care will alter a well planned and secure retirement.


Maintain Independence,

Many people purchase LTC insurance after caring for a loved one. The caregiving experience creates a strong desire to relieve family from the burdens of providing THEIR care.

To Maintain Independence gets to the heart of the true issue of planning for long-term care. People who plan ahead are guided by a need to ensure their independence and retain as much control as possible over their lives.

The thought of having to rely on children or friends for lifestyle decisions and personal care is simply out of the question.


Secure High Quality and Affordable Care

As the demand for high quality care increases, it may become available only to those who can guarantee payment with private funds- either by using their own assets or receiving benefits from an LTC insurance policy.

High quality providers are motivated to maintain good relationships with insurance companies because they provide them with steady work and guaranteed payment. LTC insurance policyholders may receive a higher level of care from these providers who have been screened and recommended by the LTC insurance company.


Maintain Current Living Arrangements

Although some people thnk of LTC insurance as nursing home insurance, the major benefit of the coverage is having the ability to remain at home, or receive care in an assisted living community.

This allows family members to maintain their current living arrangements, and minimize disruption, while still assisting with the emotional care of the loved one.


Children and Parents Planning Together

LTC insurance may offer security to both parents and children, by ensuring that education, retirement income, and inheritance dollars will not be invaded.

In some cases, children and parents are sharing in the cost of coverage. Although inheritance and income protection are the rational reasons behind having the long-term care conversation with parents, the primary motivation for sharing the premium appears to be the peace of mind in knowing that parents will have greater options for quality care.  

Prenuptial agreements will not prevent a couple from having to spend down their combined assets before qualifying for welfare.

Planning ahead with LTC insurance for both partners of a second marriage can alleviate many of the concerns children of previous marriages might have should their parent's new spouse require long-term care.