Does long-term care insurance still make sense if you live with your children?

As you near retirement, one important consideration you may have overlooked is the cost of the care you may need later in life. After all, about 70% of older Americans will need some form of long-term care support at some point in their lives. 

But what if you live with your children? Many children plan to take care of their parents throughout their retirement years, and if you live with your children who plan to provide your care, do you need long-term care insurance? You might. Here’s why.

Find out your long-term care insurance options now. 

Does long-term care insurance still make sense if you live with your children?

“The primary reason to have long-term care insurance even if a person is living with – or planning to live with – their adult children is to protect the children’s, and grandchildren’s, ongoing lives and lifestyle,” says Bill Comfort, director of training for CLTC (Certification for Long-Term Care). 

“Adult children, family members, and other loved ones will provide care and are a critical part of most people’s LTC plans, but it’s nearly impossible for informal caregivers to be available 24/7 without tremendous sacrifices to their own health, relationships, and finances,” says Comfort. 

Here’s how a long-term care insurance policy could help.

Your children could get paid as familial caregivers

If you live with your children as you age, you may depend on them for care at some point later in life. That may be as simple as cooking your meals and helping you maintain a clean environment or it could require around-the-clock care instead. 

While your children may be eager to help, it could be a hindrance to their ability to work, depending on the level of care you need. As such, it may make sense to ensure your child is paid for the care they give you. 

And, long-term care insurance may be able to help. Some policies will pay family caregivers for the services they provide. If that’s your plan, though, it’s important to look for a policy that covers both formal and informal caregivers, like a cash benefit policy. 

Find the right long-term care insurance policy for you today. 

It can cover the cost of adult daycare

If you develop a condition that requires round-the-clock care and your children are unable to be your caregiver, you may need to take utilize adult daycare services. However, those services can be expensive. 

According to Genworth, the average cost of adult daycare is estimated at $22,161 per year in 2024. The good news is that a long-term care insurance policy could provide coverage for these types of services. 

“Most long-term care insurance provides a ‘reimbursement’ for policy-defined professional care, like from a home care agency or for adult day care,” says Comfort. “Professional care provides a respite for family caregivers or enables them to maintain regular activities like work, managing relationships, raising children, and other family responsibilities.”

It could cover the cost of accessibility renovations

As you age, you may face mobility challenges. If that’s the case, your children may be willing to renovate their home to accommodate you if they can afford to do so. 

That’s another area where long-term care insurance may be able to help. Your long-term care policy may include coverage for accessibility-related renovations to the home you live in. So, if you need a ramp installed that leads to the front door, handles installed in the bathroom or a stair elevator installed, your long-term care insurance provider may help cover the bill. 

It could help with meal planning

You may not be able to cook when your children are away. If that’s the case, meal planning services can help ensure that you’re fed during mealtimes when your children aren’t there — and long-term care insurance could cover the cost. 

Compare your long-term care insurance options to find a plan that meets your needs. 

Be sure you understand your coverage

While long-term care insurance can be valuable when you live with your children, it’s important to choose the right policy. Some policies will only cover long-term care expenses if you move into an assisted living facility or nursing home while others are more flexible. Be sure the policy you purchase has the coverage you’ll need — like coverage for the expenses mentioned above — when you purchase long-term care insurance. 

The bottom line

Long-term care insurance can be an effective way to plan for increasing healthcare costs as you age, even if you live with your children. This coverage could even pay your children for providing your care. However, be sure you understand your coverage as you compare your options since some policies are more flexible than others. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, three dogs and 10 ducks.