Many individuals and families worry about paying for long-term care. Nearly everyone understands that paying for a nursing home stay or an assisted living facility can quickly add up to tens of thousands of dollars or more.
A solid estate plan considers the available options for paying for a stay in a long-term care institution.
The benefits of long-term care insurance
An article in Kiplinger states that with so many unknowns and variables the decision to buy long-term care insurance remains a difficult one for families. Still, insurance can provide protection from a worst-case scenario, preserve an estate’s assets and provide peace of mind.
With several insurers offering products, families can often tailor a policy to their specific needs. This could involve features that cover a set period of years, that have inflation protections built-in and that cover both spouses at a reduced premium.
When a person buys long-term care insurance impacts the value of a policy. Those who buy at a young age, often pay a lower premium but may have to pay for many years before using the policy. Those who buy at an advanced age likely pay a higher premium but might only pay that for a few years.
The disadvantages of an insurance plan
As with any insurance product, a person who buys long-term care insurance might never use the benefits. They could pay premiums for decades and never go into a long-term care facility.
Insurers can also increase the premium rate under certain circumstances, which could provide an unexpected burden on a family’s budget. In the end, an estate plan should look over the pros and cons of long-term care insurance.