Question: Who needs long-term care insurance?
Laurel Blond: While most adults can benefit from long-term care insurance, only three percent of Americans currently carry long-term care policies. While premiums can be high, the average nursing home stay costs $87,000 a year, and home health aides usually cost $20 an hour. The insurance can protect seniors from exhausting their retirement savings on nursing home stays. Without long term care insurance, many seniors, especially those who don’t have children or large savings accounts, risk ending up in a state-run nursing home.
Question: When is the best time to buy long term care insurance?
Laurel Blond: Most of my clients prefer to buy long term care insurance when they’re in their 50s. At that point, their health is still good, so they can get the best deal on premiums and aren’t yet uninsurable due to chronic health conditions. On the other hand, clients in their 30s and 40s may gain more utility from a life insurance policy or from a good plan to build savings for retirement.