The Pros And Cons Of Long Term Care Insurance

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When planning your retirement, you may have considered purchasing a long-term care

policy to help address any medical expenses you might encounter during retirement. The expenses associated with this purchase could deplete your nest egg in some cases, while it could even augment it in others. Buying a long-term care policy has its advantages and disadvantages, depending on your own personal and financial situation.

If you buy long-term insurance, you can help prevent the costs of extensive and intensive long-term healthcare from draining your retirement funds. If you have a chronic disorder or potentially debilitating disease that requires medical attention, you can purchase a good insurance policy to address the expenses, and reduce their strain on your finances and those of friends or family.

There are numerous disadvantages to buying this type of medical insurance policy. For starters, plans that are individually purchased can range from a thousand dollars to a few thousand in yearly premiums. The figure will be larger if you start paying shortly before or during retirement, and if you need additional features or coverage. This is one of the main reasons why Americans don't buy long-term care plans.

If you're not sure about the stability of your finances, a long-term care plan can be a waste of money down the road. You might be able to afford the premiums while you work, but the limited income you'll have during retirement may cause you to become delinquent in your payments, rendering all the money you've spent for premiums useless.

The legalese and policies contained in a long-term care contract may also result in the denial of expected benefits. For example, most policies don't cover all kinds of long-term care facilities and services, or cover that many health conditions. The eligibility for receiving benefits can also be quite strict - if you don't meet the requirements, you won't get help with your medical expenses even if you've paid your premiums regularly.

Long-term care insurance isn't for everybody. Although you'll probably have peace of mind if you're protected with this type of healthcare policy, you may not need it, especially if you live a healthy lifestyle and have no potentially debilitating medical conditions or injuries. Before you buy insurance for long-term care, consult with your healthcare provider and your financial planner.

by: Carina Smith

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