Is Long-Term Care Insurance Worth The Cost? (2024)

Healthcare costs are perhaps the biggest uncertainty in retirement. A long-term healthcare need can wipe out retirement assets.
With the rising cost of Long-term care insurance, is it still worth the cost?
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0:00 Intro
0:46 Is it worth the money?
3:01 $9,400 a month in some cities (Very costly!)
4:05 Why is the price so high today.
5:03 How to pursue long-term care insurance without wasting your money.

[@gilliandale4854]

I keep hearing about what a high percentage of people will need "long term care" at some point. But being in need of that TYPE of care isn't always really long term. Both of my parents died of cancer, and neither would have been eligilbe to use ltc insurance for more than a week or two before they died.

[@onedegreeadvisors]

I’m so sorry to hear about your parents. You are correct, not all LTC insurance is made equal. Different policies will cover different things, have different elimination periods, etc. - Alex

[@RetrieverTrainingAlone]

Avg premium $3,600 per year, if purchased at age 50 and not used for 40 years
, invested at 6% for 40 years would yield almost $600,000 self insured

[@onedegreeadvisors]

Something to think about: $600,000 might be a lot of money today, what will it be worth in 40 years after inflation? What will the average monthly cost of care be in 40 years? - Alex

[@Bob-be2pj]

High impact - likely to occur is not reasonable to buy insurance for because insurance companies are not dumb and are not going to lose money on something that is likely to occur.

[@onedegreeadvisors]

They aren’t dumb - that’s why they price their premiums accordingly. But many actuaries underestimated how many people would need LTC, how long people would be on claim, and the total cost. Therefore insurance companies went back to folks with policies - and for traditional policies folks needed to pay increased premiums to maintain coverage.