One type of insurance coverage that has generated a lot of interest lately helps cover the costs of long-term nursing care. It provides a benefit for people who have difficulty caring for themselves as they age.
From a wealth-management point of view, there are specific circumstances where long-term-care (LTC) insurance is most appropriate:
Those who don’t meet one or more of the three criteria are poorer candidates for LTC insurance than those who meet some.
Like other issues in the area of risk management, the primary objective when considering LTC insurance should be to provide protection against catastrophe. Small risks, which are more expensive to insure against, may be assumed; large risks should be assigned to an insurance company.
Even where there are limited resources available to pay LTC insurance premiums, reasonable coverage can be obtained to cover the catastrophic costs. LTC insurance is similar to disability insurance in that there are three variables, which when adjusted can lower or raise premiums. In addition, there are numerous riders that can raise costs if selected.
The three variables:
Issues regarding long-term care are big ones, and failing to address the issue puts people and their families at risk.