Who can benefit most from long-term care insurance? (2024)

Imagine knowing that a storm would blow through your neighborhood, wiping out about 70% of the homes, but also knowing that only about 11% of your neighbors have homeowner's insurance. How many of your neighbors would struggle through financial hardships as a result of the storm?

Although the majority of homeowners have homeowners insurance, there's a figurative storm that could have a similar financial impact on your neighbors, and it's known as the need for long-term care.

Long-term care services are a common necessity among retirees, yet only about 11% of adult Americans have long-term care insurance, according to KFF. Only 14% of those who are most likely to need this care — people ages 65 and older — actually have this type of coverage. Should you be one of them? And who benefits most from long-term care insurance?

Get long-term care insurance now to protect yourself financially during retirement.

Who can benefit most from long-term care insurance?

"The person that will likely need long-term care in the future can benefit the most from long-term care insurance," explains Patrick Simasco, elder law attorney and financial advisor at Simasko Law. "It may sound cheeky, but it's true."

With that in mind, it's important to note that most people will need long-term care. In fact, seven out of every 10 Americans ages 65 and older will need some form of additional care in their lifetime.

"It's a reality that many of us will need long-term care in the future," Simasko says.

But that's not the only reason you might want to get long-term care insurance. Here are a few other reasons to consider:

Long-term care services can be expensive

Long-term care services typically come with a hefty price tag. According to the Genworth cost of care survey, here's what you can expect to pay for long-term care services by the year 2025:

• In-home care: You'll pay between $5,579 and $5,794 per month on average depending on the type of in-home care you need.
• Community and assisted living: You'll pay between $1,902 and $5,065 per month on average depending on whether you need an adult daycare while your family caregiver works or need to move into an assisted living community.
• Nursing home: You'll pay between $8,901 and $10,168 per month on average depending on whether you want a semi-private or private room in a nursing home.

Long-term care insurance may cover other expenses as well. For example, your insurance may pay for the installation of a ramp that leads to your front door if you develop a condition that involves mobility struggles.

It's also worth mentioning that long-term care costs are growing. So, the more time between now and the time you'll likely need long-term care, the more you can expect to pay for it.

Explore your long-term care insurance options today to prepare for the cost of care.

You don't have to buy a use-it-or-lose-it policy

In the past, long-term care insurance was often a use-it-or-lose-it proposition. That's not the case anymore, however.

"Insurance companies have created a hybrid policy," Simasko says. "Life insurance that has a death benefit of a certain amount, say $200,000, but if you need it for long-term care, a large portion of the death benefit may be used. So, if you need it, it's available, but if you don't need it, the death benefit goes to your beneficiaries."

So, if you purchase hybrid long-term care insurance, you're not necessarily making a bet on the idea that you'll need care in the future. Instead, you're leaving something behind for your loved ones while ensuring that you have financial protection from potential long-term, care-related hardships in the future.

Long-term care insurance isn't just for you

When you purchase a long-term care insurance policy, you're not just purchasing protection for you. You're also protecting your loved ones. Here's how:

• Financial protection: If you don't plan for long-term care costs, your loved ones may struggle to cover those costs for you. Long-term care insurance may also pay your family caregivers for providing your care.
• Estate protection: You may decide to self-fund your long-term care through your estate. However, the cost of doing so can easily be in the hundreds of thousands of dollars. Unless you have a sizable estate, these expenses could wipe out anything of monetary value that you plan to leave behind for your loved ones.
• Emotional protection: Long-term care insurance can also protect your family from the emotional burden of watching you struggle to afford the care you need.

Protect your loved ones with the right long-term care insurance policy today.

The bottom line

Many people could benefit from long-term care insurance. And, the simple fact is that you'll never know for sure if you'll need care until it's too late to plan for it. With nearly seven out of 10 Americans needing long-term care services after the age of 65, chances are higher that you'll benefit from long-term care insurance than the chances that you wouldn't.