Do I Need Long Term Care Insurance?

— Last Updated May 27, 2022

Do I Need Long Term Care Insurance?

In this article

— Last Updated May 27, 2022

Read Time
3 mins
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Reviewed by
Eric Berkman
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Do I Need Long Term Care Insurance?

Stephanie Wilson

Director of Operations

Read Time

3 mins
Group-27.png

Reviewed by

Eric Berkman

In this article

Do I need long term care insurance is something a lot of people ask themselves.

I think the answer to this question is – it depends.  In this post, we’ll break down what long term care insurance is used for, and whether or not it makes sense for you to consider getting long term care insurance to cover costs of care as you or your loved one’s get older and into typical retirement years.

First off, long term care insurance provides benefits to help cover the costs of care associated with what is known as Activities of Daily Living (or ADLs).  Examples of typical ADLs are the following:

Bathing or showering

Getting dressed

Getting in and out of a chair or bed

Walking

Using the bathroom

Eating

Typically speaking when we’re younger, most people are able to do these activities on their own, with no assistance from anyone.  However, if you’ve become injured or ill, or have some other condition that makes it either difficult or impossible to do these things on your own for a prolonged period of time, then you may need some form of long term care help.  Most people think that the type care needed is for people in their 70’s, 80’s and beyond.  But, reality is, having a long term care event or condition in your life can strike at any time.  And if and when that happens, you may need help with these activities of daily living.

So, how can you determine if you need long term care insurance? 

Well, if you will have help from family or friends with these activities of daily living, then in a sense your cost of care will be free, and shouldn’t cost you any money.  However, if you will not or do not have this luxury, then in order to get the care you will need, you will have to pay someone to do it.  When it comes to the costs of care, they are large, and it varies by type of care, and where you will be located.  We created some information on this so you can see what the cost of care is based on what you live.

The average cost of care in the US is approximately $108,000 in 2021 for a private room in a skilled care facility, which is up over 2% since 2020.  With inflation and other economic pressures building, the costs are expected to continue rise.  So, for example, if you were to need long term care help for 5 years, then it would cost you over $500,000.  If you needed to pay for this care and had the savings to do so, and were ok with dipping into your retirement fund to do so, then that is an option.

However, if you’re not ok with using your savings, or you do not think you’ll have enough savings, then long term care insurance may be the right option for you.  Some policies can range from roughly as low as $100 a month up to several hundred a month, or even more.  It just depends.  We’ve built a long term care needs calculator to help you better understand how much long term care will cost you.

Sure, we sell long term care insurance, and this is a power financial vehicle to help offset the high costs of long term care.  But, we also know it’s not for everyone.  So, as you think about long term care planning, check out some of the resources on our site outlined above, or feel free to reach out and let us know by scheduling an appointment.  Or, feel free to email me directly at eric@policysolver.com. My team and I are happy to help even if you don’t end up getting a long term care insurance policy.  

May 18, 2022

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