Introduction to Is Long-Term Care Insurance Appropriate for You?

Long-term care (LTC) insurance is not for everyone. Some people can easily pay for their future long-term care costs from income and accumulated wealth and do not need insurance. Some persons just cannot afford to pay the premiums. Others have health conditions that would disqualify them from coverage if they applied. Those with reasonably good health, adequate means, and a desire not to rely on public assistance are generally good candidates for LTC insurance.

Buying long-term care insurance is a major decision involving substantial annual premiums—money that might otherwise be invested. This is why it is particularly important for you to understand how LTC insurance works, what its benefits are, and how it will affect your future financial plans.

There are three broad questions people and their financial advisors often ask in determining whether LTC insurance is suitable:

• What are the alternatives to insurance to cover long-term care costs?
• Is an LTC insurance policy a financially sound product and concept for them?
• Are the premiums affordable now and in the future?