Episode 60: Should You Buy Long-Term Care Insurance?

should you buy long term care insurance

Devin and John hear these questions all the time: How should I prepare for my long-term care? Should I buy long-term care insurance? Should I keep the long-term care insurance I already have? These are important questions, and there are no easy answers.

Long-term care is expensive, but long-term care insurance is also expensive.  When you start looking at some of the statistics, it can get scary.  But thankfully, the statistics don’t show the whole picture. Once you consider all the issues and factors, the big question is managing the risk of needing financial assistance with long-term care  vs. how much it is going to cost to manage the risk.

There are three ways to pay for long-term care:

  • self-funding through personal assets
  • through access to government benefits, either VA benefits or Medicaid
  • long-term care insurance

A long-term care insurance policy is going to have a couple of key variables:

  • It will have a daily benefit: how much it will pay each day
  • It will have the type of care that will be covered
  • It will have a maximum length of time that you can collect benefits

Each one of these variables impacts your premium and whether long-term care insurance is a good choice for your specific situation.

Factors to consider:

  • your family health history
  • your age
  • your ability to pay for your care

Something else to keep in mind: the individual that is helping you decide which plan you want is probably being compensated based upon a percentage of the first year’s premium.

Now that the long-term care insurance industry has matured, Devin and John agree that most people won’t benefit from purchasing a new long-term care insurance policy at this point in time.


  • What Mark Twain said about statistics
  • When you might want to convert an old permanent life insurance policy
  • Why those older long-term care insurance policies may be a great choice

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Once a month, Devin and John answer questions submitted by listeners like you.  If you have a question for a future Listener Questions episode, submit it to questions@bigpictureretirement.net.