Is long-term care insurance a good investment? The answer depends upon many factors:
- Are you insurable (do you have health problems that would cause an insurance company to turn you down for coverage)?
- Is it affordable? Remember, insurance companies have the right to raise your premiums, so long as they raise them on all persons within your age category.
It is also important to remember that long-term care policies pay a specific amount per day for skilled care, and that amount is almost always less than the total amount charged by the nursing home. For example, if the policy pays $150 per day, that amounts to $4,500 per month, while the average cost of skilled nursing home care in Northeast Ohio is $9,000 per month.
You should discuss options for addressing this issue with your estate planning attorney.
-Attorney Jack N. Alpern