What are the Reasons for Long Term Care Insurance?
Long-term care insurance is not for everyone. You should be looking at your financial situation, your likelihood to need such care (which is increasing all the time as we live longer) and also whether this kind of care solution works for your family.
Some families could not imagine having anyone other than a family member caring for one of their own. In this case, long-term care insurance is not a good buy.
On the other hand, if you live far from family and you have a busy household and working spouse, this type of insurance could be exactly what you'd need in a crisis.
More so perhaps than many other insurances, you'll have to know what kind of person you are (for instance, you are okay with being taken care of by strangers) and what the needs of your family are. And since this insurance gets more expensive over time, you'll need to think about it long before the need arises.
- You want to retain your assets as a legacy for your loved ones, rather than exhausting your estate paying for care.
- You believe that the odds are high that you'll need long-term care at some point (perhaps because of the longevity of your family line).
- You can't count on Medicaid new rules are making it harder and harder to qualify, and you are definitely in the middle income brackets.
- You want to be able to take advantage of a potential tax deduction for your premiums which can be another benefit for a middle to higher income wage earner. It allows you to buy this insurance and save some money doing it.
If you are interested in this kind of insurance, you might want to consult with a financial advisor. Be sure to get an advisor who is not affiliated with a particular financial institution, so that the advice is as unbiased as possible. Also be sure to ask whether the advisor is familiar with the pros and cons of long-term care insurance. This can help you to decide if it is a good move for you and whether you will qualify for any tax deductions for the cost of your premiums.