Ask Joan: What to know about long-term care insurance | News

Question: I am still working full time, but I am starting to plan for life after retirement. I have heard about long-term care insurance, but I’m not sure if it’s right for me. Do you have any information about it?

Answer: Long-term care insurance covers nursing home care, home health care, and personal or adult day care for individuals who need assistance on a daily basis. Buying a long-term care insurance policy can be an effective way to protect yourself against the substantial costs of paying for long-term care.

A good policy can help you avoid exhausting your life savings and provide access to the widest variety of services in your area. It may help you avoid depending upon assistance from family, friends or the MassHealth Medicaid program.

However, long-term care insurance isn’t for everyone, according to the Massachusetts Division of Insurance. If you already have health problems (for example, Alzheimer’s disease, Parkinson’s disease, or other less serious conditions), insurers may consider you to be high risk and decline to issue a long-term care insurance policy.

Here are other considerations:

You should not buy long-term care insurance if:

You can’t afford the premiums;

You have limited assets;

Your only source of income is a Social Security benefit or Supplemental Security Income;

You have trouble paying for food, utilities, medicine, or other necessities;

You may want to consider buying long-term care insurance if:

You have significant assets and income to protect;

You want to pay for your own care;

You want to stay independent of the support of others;

Now is the time to consider if you can afford the premiums. Policyholders pay premiums for 20 years or more before they need services. Premiums can cost several thousand dollars per year, depending upon your age when you purchase the policy, the policy type and the amount of benefits you choose. For example, your premiums will be higher if you buy a policy at age 75 than at 65.

Also, although the highest-priced policy might offer the most benefits, it may not be your best option. You must decide whether it fits your needs, is within your budget, and will remain affordable until you tap its resources.

Private insurance companies and fraternal benefit societies both sell long-term care insurance. There are two basic types of policies: individual policies and group policies. Individual policies are sold directly to consumers, usually by insurance agents, direct mail, or phone solicitations.

The Massachusetts Division of Insurance lists more detailed information about these policies: Do You Need Long-Term Care Insurance — Mass.gov.

Are you caring for an older adult or need help finding programs and services to support healthy aging at home? Our experienced staff is available to help. Visit us online at www.agespan.org, call 800-892-0890, or email [email protected]. Joan Hatem-Roy is the Chief Executive Officer of AgeSpan, formerly Elder Services of the Merrimack Valley and North Shore.