8 reasons seniors should invest in long-term care insurance
As we age, the prospect of needing long-term care becomes increasingly likely. This type of care includes assistance with activities of daily living (ADLs) such as bathing, dressing and eating, which can become challenging as we grow older. And while no one likes to think about a time when they may need help with these basic tasks, planning for it is a prudent financial decision — especially considering the costs.
For example, the average monthly cost of a private room in a nursing home was $9,034 per month as of 2021 — and the average cost of a home health aide was $5,148 per month nationwide. And, those types of expenses are only expected to grow. The total national expenditures for nursing care facilities and continuing care retirement communities are expected to increase by about 58.4% by 2028 — and the projected out-of-pocket expenditures are expected to increase by 32.5% during that time.
The projected uptick in long-term care costs is a large part of why long-term care insurance is one of the essential tools in senior financial planning. But there are other reasons that seniors may want to invest in a long-term care insurance policy as well.
Get started and learn more about your long-term care insurance options here.
8 reasons seniors should invest in long-term care insurance
Long-term care insurance can be a vital component of any senior's retirement plan for the following reasons:
To protect your assets
One of the most significant reasons to consider long-term care insurance is to protect your hard-earned assets. Without this type of insurance, the cost of long-term care can quickly deplete your savings and assets, leaving little to nothing for your loved ones or to cover other expenses. By having a long-term care insurance policy in place, you can safeguard your nest egg and ensure that it's available not just to you, but also to your spouse, children or other beneficiaries.
Explore the benefits long-term care insurance can offer you here.
To preserve your independence
One of the most cherished aspects of aging gracefully is maintaining your independence and staying in the comfort of your own home. Long-term care insurance can help you preserve this independence by covering the costs of in-home care services. This means you can receive the assistance you need while still enjoying the familiarity and comfort of your own surroundings.
To alleviate the financial burden on loved ones
Without long-term care insurance, the financial responsibility of your care may fall on your family members, especially once your funds are depleted. This can create significant stress and strain on your loved ones, both emotionally and financially. By having a long-term care insurance policy, you can relieve your family members of this financial burden and allow them to focus on providing emotional support during a challenging time.
To ensure quality care
Quality long-term care can be expensive, and the costs can vary widely depending on your location and the level of care needed. With a long-term care insurance policy, you can ensure that you have access to the best care available without worrying about affordability. This can provide peace of mind knowing that you will receive the care you deserve.
To maintain control over your care
When you have long-term care insurance, you have more options and control over your care. You can choose the type of care you receive, where you receive it and who provides it. This flexibility allows you to tailor your long-term care plan to your specific needs and preferences, giving you greater autonomy in your later years.
To ensure access to a wide range of services
You may not realize it, but long-term care insurance doesn't just cover nursing homes; it can also include coverage for assisted living facilities, adult day care and in-home care. This flexibility allows you to choose the type of care that best suits your needs and preferences, ensuring you receive the appropriate level of care when and where you need it.
For the potential tax advantages
Depending on your specific circumstances and the tax laws in your area, some of the premiums you pay for long-term care insurance may be tax-deductible. These tax advantages can make long-term care insurance even more cost-effective and attractive as part of your retirement planning.
To protect your retirement savings strategy
By having long-term care insurance, you can protect the carefully crafted retirement savings strategy you've worked hard to build over the years. This strategy likely includes investments, pensions and retirement accounts, and long-term care insurance ensures that these resources remain intact for your retirement needs.
The bottom line
Long-term care insurance provides a safety net that can protect your assets, preserve your independence and alleviate the financial burden on your loved ones. It also ensures that you receive quality care and maintain control over your healthcare decisions. And, as seniors, considering long-term care insurance is a proactive and responsible step toward a more secure and comfortable retirement — making it a crucial part of senior financial planning.
