Q Life Settlements Blog

Choose a Life Settlement and live with financial freedom.

January 21, 2022

Pros and Cons of Buying Long-Term Care Insurance

When you plan for retirement, one of your primary concerns is making sure you have enough money saved up to live the lifestyle you want. What you may not account for, however, is the likelihood of needing long term care later in life. In reality, many seniors will need some kind of long-term care at some point in their lives.

And, as you can probably imagine, long-term care is not cheap. For added protection and peace of mind, many seniors decide to purchase a type of insurance known as long-term care coverage. By having a better understanding of what this coverage is and its potential pros/cons, you can make a confident decision regarding your own insurance and senior finance needs.

Understanding Long Term Care Insurance

So, what is long-term care insurance, anyway? Specifically, this type of insurance helps to pay for many of the costs associated with needing long-term care due to an injury, chronic illness, or other medical condition that develops later in life. Some common examples of long-term care services that may be covered include:

  • skilled nursing care
  • physical therapy
  • occupational therapy
  • speech therapy

So, is long-term care insurance right for you? There are some inherent pros and cons to think about as you weigh your options.

Benefits of Having Long-Term Care Insurance

There are a number of advantages to carrying long-term care coverage. First and foremost, carrying this type of insurance gives you added peace of mind moving into retirement and your golden years. While nobody ever hopes or expects that they are going to need long-term care, the reality is that 70% of seniors will need it at some point in their lives. By having coverage, you won’t need to stress about paying for these costly services if and when the time comes.

Likewise, if you lead a relatively healthy lifestyle and end up needing long-term care, having this coverage can make it possible to stay in your own home and maintain as much independence as possible. For many, this is a welcome alternative to moving into an assisted living facility.

Potential Drawbacks of Long-Term Care Insurance

Of course, there are also some potential drawbacks to consider with long-term care insurance. For starters, not everybody qualifies for this type of coverage. Typically, you will need to take a physical exam and disclose any medical conditions when applying for coverage—and those in poor health may be denied coverage.

Likewise, if you are approved with pre-existing conditions or other health complications, your rates could be quite high. And as with any other type of insurance, there may be a delay between when you need to pay for long-term care services and when you actually receive your benefits.

Finally, determining how much long-term care insurance you need isn’t always easy. And if you don’t purchase enough coverage, you may still end up spending a lot of money out of your own pocket later on.

Is Long-Term Care Insurance Right For You?

For many seniors, long-term care insurance can be a sensible option. However, it is just one of many ways to pay for long-term care costs. Another option to consider is that of selling your life insurance policy. This type of transaction, also known as a life settlement, can be a great way to free up money for long-term care costs or other expenses you encounter during retirement.

Interested in learning more about life settlements? Start by finding out how much your life insurance policy may be worth with our life settlement calculator. From there, reach out to the Q Life Settlements team to begin the application process.