Should I Purchase Long Term Care Insurance?

Long Term Care Insurance is private insurance that pays for nursing home care and home health care needs. The Law Firm of David K. Whitlock does not sell insurance products, but it often recommends competent insurance professionals who have the best interests of clients of the Law Firm at heart. The Long Term Care Insurance products have evolved rapidly over the past years. Some products provide a benefit for a fixed term of years (e.g. 5 years), while others provide a lifetime benefit to the policy holder. The job of the insurance professional is to recommend a Long Term Care Insurance product that is best suited to the client’s needs. Most policies allow benefits to be paid for home health care, assisted living care or nursing home care.

While the premiums can add an additional cash flow burden to retiring seniors, conventional wisdom is that if the policy benefits are ever needed, the premiums paid will likely be recouped within a short time of receiving insurance benefits. The mistake most commonly made by clients is to wait too long to apply for Long Term Care Insurance. If a client has developed significant health ailments before applying for the Long Term Care Insurance, the cost of the premiums may be prohibitive or a policy may not be obtainable at all.

Because the assets sought to be protected are intended to be left as an inheritance to the Client’s children, it may make sense for the Client’s children to assist in funding the required premiums in order to protect their inheritance.