Why a Long-Term Life Insurance Policy May Be a Smart Buy

Since Medicaid and Medicare help seniors pay for healthcare, should you still consider long-term care insurance? In a word, probably.


First, let’s define this coverage. Long-term care insurance pays for some of the bills you might incur in your elderly years. Those bills often include the cost of nursing homes, adult daycares, hospice, and assisted living facilities. It typically kicks in when you can no longer complete at least two standard activities of daily living, such as…

  • Eating
  • Bathing
  • Walking
  • Using the Bathroom
  • Dressing
  • Caring for Incontinence
  • Getting In and Out of a Bed or Chair


What about Medicare?


Medicare only pays for short nursing home stays or limited home care. It won’t cover long-term care needs.


Why might a long-term care insurance policy be a good idea?


You might purchase this coverage because…


You want to protect your savings. Medicaid can indeed pay for facilities like nursing homes and hospices, but usually only after you’ve exhausted your savings. However, a long-term care insurance policy will help cover those costs, no matter how much money you have in the bank. Therefore, you can preserve some inheritance for your family.


You want more care options. If Medicaid pays for your nursing home, you must move into a facility that accepts government payments. Therefore, you’ll have limited choices and quality of care. Yet, a long-term care policy offers more financial freedom and the chance to choose the medical facility you like.


You want to lighten the burden on loved ones. According to an AARP study, 75 percent of surveyed families spend an average of $7,242 on caregiving per year. A long-term care insurance policy could help mitigate those costs.


Is long-term care insurance right for everyone?


Not everyone would benefit greatly from a policy because it can be expensive, and many people only need nursing home or hospice care for a short time.


So, if you’re considering a long-term care insurance policy, talk to a Hibbs agent about whether it’s right for you. They can help you decide whether to purchase coverage and how to go about it.