The Ins and Outs of Buying Long-Term Care Insurance
Think about this coverage not just as insurance for long-term care, but for your retirement nest egg itself. With that in mind, here are some tips.


I often suggest long-term care insurance to my clients, and I almost always hear this objection: “It’s too expensive.”
Yes, long-term care insurance is not cheap, but medical insurance and Medicare typically do not cover that particular type of care, and it is incredibly expensive. The 2017 Genworth Cost of Care Survey lists the national median cost for a private room in a nursing home as $267 a day, which is $8,121 per month, and $97,455 per year. As you can see, if you need that care, your money could disappear very quickly.
And, unfortunately, you probably will need long-term care. On its website, the U.S. Department of Health and Human Services says:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years.
- Women need care longer (3.7 years) than men (2.2 years).
- One-third of today’s 65-year-olds may never need long-term care support, but 20%will need it for longer than five years.
Now that you are convinced (and I hope you are), there are a few things to consider when buying long-term care insurance:
Purchase it with your partner. Insurance companies offer discounts to couples who are married or living together. You could save up to 30%.
Consider shared care. You can purchase a feature that allows couples to share the benefits of each other's policies. For example: If Mr. and Mrs. Smith each buy $200,000 in benefits and Mr. Smith needs long-term care, he can use all of his $200,000 and then tap into Mrs. Smith's policy, which, if untouched, could provide another $200,000 in benefits.
Don’t forget inflation coverage. Long-term care insurance has its own inflation rate, and it typically rises faster than the national inflation rate.
Shop around. If you're like most people, you don't even know what coverage looks like. Check to see what your monthly benefits would be, and how they compare to the costs of long-term care in your area.
Buy before your birthday. Long-term care insurance rates are based on your age. You'll save money if you buy before your next birthday.
Learn about any possible tax write-offs. If you are a business owner, or have high health care costs, your long-term care insurance premiums may be tax deductible.
Talk with a professional. Long-term care insurance is complex. There are hundreds if not thousands of different kinds of long-term care policies offered by hundreds of different insurance companies. I suggest you consult with an expert to find the right policy for you.
I strongly advise that you investigate the merits of a policy. Consider it portfolio insurance; after all, you’re protecting your finances from potentially devastating damage.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Ken Moraif is the CEO and founder of Retirement Planners of America (RPOA), a Dallas-based wealth management and investment firm with over $3.58 billion in assets under management and serving 6,635 households in 48 states (as of Dec. 31, 2023).
-
The Emotional Side of Retiring: Six Steps to Help You Move On
Getting mentally ready for retirement can be tough. The loss of your work identity, daily connections, and sense of purpose can make the transition difficult. Here are six steps to help you adjust.
-
Veterans Could Lose Food Benefits Under Trump’s Tax Law: What to Know
Food Benefits Veterans up to 64 years old must work to keep food stamps under Trump’s new tax legislation.
-
Fall Is Tax Time? Yes! Act Now to Make Needed Adjustments
Review your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.
-
Board Service in Retirement: The Best Time to Join a Board Is Before You Retire
Many senior executives wait until retirement to take a seat on a corporate board. But making this career move early is a win-win for you and your current organization.
-
A Financial Professional's Take on Long-Term Care Insurance: Buy or Not?
Unless you have about $6,000 burning a hole in your pocket every month, you should make a plan in case you need long-term care. Luckily, you have options.
-
How to Unearth Sustainable Investment in Mining: A Financial Professional's Guide
Mining is likely to play a critical role in the global transition to more environmentally friendly energy resources. Here's how you can balance the opportunities and the risks.
-
Don't Be a Sucker: The Truth About Guarantor and Cosigner Agreements
There are significant financial and relationship risks involved if you agree to be a cosigner or guarantor. Make sure you perform your due diligence, and know exactly what you're getting into, before agreeing to such a commitment.
-
The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
What's one of the differences between a good financial adviser and a great one? The ability to use behavioral coaching to guide clients away from emotional decision-making and toward retirement success.
-
Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers
Rather than focusing only on financial plans, you can better serve your clients — and grow your business — by learning what to say and do when a client gets anxious or emotional.
-
Seven Hidden Downsides of Dividend Investing, From a Financial Adviser
Dividend investing could be draining your wealth with unexpected costs and limited growth potential. Here are some downsides, along with smarter strategies to take control of your retirement income.