How to Determine If You Need Long Term Care Insurance

February 18, 2014


“Do I actually need long term care insurance?” Most people ask this question and you probably find yourself in the same situation. Unfortunately, there is no quick answer to that because all of us have different needs. The good news is, there are certain areas of your life that you can look into to determine if you need to purchase a policy or not.

Financial Capability

Whether you need long term care insurance or not is highly dependent on how you are doing financially. If you are extremely wealthy, you probably have enough resources to shoulder the towering rates of care services. Thus, applying for an insurance policy is not necessary for you. However, should your need be extensive, long term care expenses can bite a huge chunk off of your wealth. Given this, you can still use a policy to avert the risk of decreasing the value of your assets.

Meanwhile, if you’re having a hard time of making ends meet; you may not be able to afford a policy. If you have minimum properties or no assets at all, you can easily qualify for Medicaid.

The two extremes of financial standing-the wealthy and the poor-don’t have an urgent need for long term care insurance. Evidently, those who need it are the ones in the middle-the steady and modest income earners with a considerable of amount of assets to protect. Apparently, this group represents the majority.

For those in the average financial level, out of pocket payments for care services can instantly deplete their assets, but annual premiums payment can be easily integrated into their budgets. Remember that the annual cost of long term care insurance is relatively lower than the amount you need to pay for care if you are uninsured.


Look at these figures: 60% of long term care insurance holders are women and they account for about 70-80% of claims. Meanwhile, more than 70% of nursing home residents are females. Furthermore, women are likely to spend up to 3 years in a disabled state.

Women have a higher requirement for long term care because females tend to live longer than the opposite sex, typically 5 years more. Given this, they are likely to develop disabilities and conditions in their elderly years. More so, chances are there will be no one left to care for them because they will likely outlive their spouses. That’s the reason why they need to be covered with an insurance policy.

However, men shouldn’t think that they are in the clear. Nobody is exempted from the possibility of needing care at some point.

Current Situation

Look at your present life situation and see how much risk you’re taking by being uninsured. Ask yourself if your loved ones will be able to maintain their quality of life if you require care. Do they have to put their lives on hold in order to take care of you?

Furthermore, look into your well-being. Examine if your current lifestyle have implications on the future state of your health. Also, evaluate your family health background. Are you a candidate for chronic or terminal illness? If you want a clear assessment of your health, you can ask assistance from your physician. Discussing it with your doctor will give you an estimated picture of your future health as well as long term care requirements.

Long term care insurance is not for everyone, but the majority has a high a chance of needing it. If you belong to that group, don’t waste another second of staying uninsured and start shopping around for policies now. A convenient way to do so is by requesting long term care insurance quotes online.

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