Long-term care is expensive, especially in institutional or even community settings, and people are ponying up for long-term care insurance despite rising costs in the hopes of being able to age in place at home, reports the New York Times.
Much of the incentive to buy LTC insurance derives from personal experiences individuals have had with a family member living in a nursing home, suggests a N.Y. Times blog post on the article.
While making financial decisions based on emotions is not always the best advice, according to aging specialists in the article, it can be hard to separate emotions from finances.
The New York Times reports:
[Long-Term Care] policies pay for help with daily activities and care, like dressing, bathing and feeding, either at home or in an assisted-living facility or a nursing home.
The emotional impact of witnessing the decline of a family member or helping to care for one is often the reason people seek coverage for long-term care, people who work in the aging field say.
Ms. Ventimiglia wants coverage so she and her husband, Robert, 71, can be cared for at home. They have three adult children, and they don’t want them to have to worry about caring for their parents. “If you’ve ever had anyone in a nursing home, you don’t ever want to go there,” she said. “I’d rather be taken care of at home as long as possible. That’s my wish and his wish, too.”
If they qualify, she said, she and her husband expect to pay at least $250 to $300 a month in premiums, a hefty bill now that they are retired, even though they have been frugal with their savings. “But it’s worth it to give me peace of mind, and you can’t put a price on that,” she said.”
Although not many healthy 50- and 60-year-olds want to consider themselves being old and frail in the future, buying a LTC insurance policy earlier can be more affordable than holding off to buy one, says a long-term care planner in the article.
Buying a policy can also give older couples more control by taking pressure of their heirs to make difficult decisions about money, enabling them to make decisions in the best interest of the parents, New York Times writes.
Written by Jason Oliva