Understanding the Pros and Cons of Investing in Long-Term Care Insurance

Long-term care insurance (LTCI) is a type of coverage that enables you to pay for long-term care expenses, which are typically not covered by regular health insurance. According to 2020 data from the Administration for Community Living, a division of the U.S. Department of Health and Human Services, almost 70% of 65-year-olds will require long-term care or assistance. Women require long-term care for an estimated seven years, whereas men may need it for an average of two years.

With that in mind, here’s a look at the pros and cons of investing in long-term care insurance in NY.

Why You Should Purchase LTCI

  • Gives you peace of mind – Long-term care insurance can help you relax if you’re the anxious type. You can rest easy knowing that if you carry out a plan, you will have some money to support yourself and your wellbeing as you age.
  • Saves you from paying out-of-pocket- While costs vary greatly, the U.S. Department of Health and Human Services states that the average long-term care expenditure is $225 per day or $6,844 per month for a semi-private room. This adds up quickly, making it affordable to a few people only. As a result, long-term care insurance is an excellent option to ensure that you are well taken care of when you need good healthcare the most.

Cons of Investing in Long-Term Care Insurance

Long-term care insurance does not cover you in all circumstances. It will only pay a fixed amount for a set period. If you pick a plan with a $200,000 limit, for instance, there’s no guarantee that it will be enough. Conversely, if you buy more benefits, there’s a possibility you won’t use them all. This means that it is virtually impossible to choose a plan that will provide just the right amount of coverage.

Other Alternatives to Traditional LTCI

Although long-term care insurance covers a wide range of issues for persons of different ages, it may not be the perfect idea for everyone. This is where short-term care insurance comes in handy. Otherwise known as convalescent insurance, short-term care insurance typically covers healthcare expenses for one year or less. Because insurance companies are not required to commit, short-term care insurance rates are typically lower than traditional long-term care insurance options.

How to Get the Right Long-Term Care Insurance Plan?

As more than 70% of Americans will require long-term care at some point in life, investing in a long-term insurance plan is a no-brainer. However, choosing the right long-care insurance plan can be difficult, especially for first-time buyers, but our experts at Premier Risk, LLC are here to help. We are happy to demystify your coverage options to help you select the best. Contact us today to learn more!