Long Term Care Insurance: When You Need to Buy It

Long term care is a concern that we all need to address at some point in our lives. Long term care includes nursing home care, wound care, personal care, housekeeping and even socialization services. While it is obvious that almost everyone will need some form of long term care at some point in their lives, many people don't plan ahead for the costs that their long term care needs will incur. As a result, many people are caught off guard when these expenses start added up. One of the ways you can finance the cost of long term care is by buying long term care insurance.

What Is Long Term Care Insurance?

Long term care insurance is a special insurance product that is designed to fill in the coverage gaps that Medicare and major medical insurance have when it comes to long term care. Long term care insurance covers things like extended stays in a hospital, extended stays in a nursing homes, medical supplies and home health care. The cost of your long term care insurance is going to be based on the insurance company that you select, the age you are when you buy the insurance and the coverage options that you select.

When to Buy Long Term Care Insurance

There is no one right time to buy long term care insurance. However, the rule of thumb is to buy it before you need it. Unfortunately, it is difficult to gage when you are going to need long term care services. For example, some people don't need long term care until they are in their 80s or 90s while some people need it in their 20s. The best way to gage when you will most likely need long term care coverage is to look at your current lifestyle, your job, your current health and your genetic risk factors.

Saving Money on Long Term Care Insurance

As mentioned earlier, the cost of your long term care insurance policy is going to be based on a number of factors. However, one of the main factors is when you buy the insurance coverage. The younger you are when you purchase the insurance the lower your monthly premium is going to be. The drawback to buying long term care insurance when you are younger is that you can end up paying for the insurance decades before you actually need it. Therefore, you want to buy your ltc coverage as close to when you expect to need it as possible.