An Overview of Long Term Care

Besides paying out of your own pocket you can purchase long term care insurance. This insurance must be purchased prior to needing long term care. The eligibility for the insurance is based on your current health. Therefore if you are already ill, you may not be insurable. Long term care insurance evolved from Income Disability insurance. There are no "cash values", and one pays a periodic premium to renew coverage for the specific period of time.

Most financial planners recommend that LTC insurance be purchased in your late 50's or early 60's. In this range the cost is quite affordable and your health is probably still pretty good. The premiums are based on your age, health, and the type of plan that you purchase.

You can buy LTCi privately or through a group plan that may be provided by your employer or an association, such as AARP. You can also buy policies through various State Partnership Programs.

Visit our June 18, 2009 radio show for more information on the government's involvement in long term care.