Long Term Care Insurance Costs

If you can afford long term care insurance, you should probably consider buying long term care insurance. Why? Because the cost of long term care, should you need it, can quickly deplete your life's savings.

Receiving long term care in a private room in a nursing facility, the most expensive type of care, now averages $78,000 per year. In some regions of the country, like the Northeast, the cost of nursing home care is greater than $130,000 per year.

While financial considerations cannot be understated, long term care insurance isn't only about money. It's also about peace of mind. Having long term care insurance ensures you'll have access to first-rate care when you need it. It also means you won't have to be dependent on others or be a burden to your children.

What are the odds you'll need long-term care insurance? Greater than you might imagine. There's about a 70 percent chance you'll need some type of long term care after age 65. And long term care services are not just for older people. A young or middle-aged person who has been in an accident or suffers from a debilitating illness may very well require long term care services. In fact, 40 percent of patients receiving long term care are under age 65.

If you can afford to pay for care without significantly impacting your assets, you may not need long term care insurance.

Conversely, if your assets, not including your home, are less than $80,000 if you're married (or $30,000 if you're single), you may not be able to afford the premiums. But if you're somewhere in between, long term care insurance should be part of the discussion the next time you sit down with your financial advisor to review your financial plans.