Everyone is scared to death of long-term care insurance premiums.
However, most people have never had an estimate done…they just assume what they have heard is true. Don’t believe everything you hear. It may only be expensive if you are buying too much!
It is true that statistically speaking 50% of us will need long term care at some point in our lives. That’s a much higher percentage that would go on benefit than most any other insurance policy (except maybe dental insurance…see that tab for more information). Because so many will use the coverage that IS a factor that drives up premiums.
Around 50% of those that do use the benefits of their long-term care plans use those benefits for a year or less.
of the other 50% who use their benefits for more than one year 70% of them are on benefit for 3 years or less.
Taking all those statistics into account unless your family history shows a reason why, a 1 to 3 year policy should be a good value for most people…and should be affordable.
Where it gets expensive is when agents want to sell you a 10 or 15 year benefit. Is that expensive? Sure. Do you need it? Unless your family history says, “yes” then I say, “no.”