Episode #36: The Ins and Outs of Long Term Care Insurance

As we grow older, most of us are going to need help with activities of daily living. Long-term care insurance is a product that is designed to help with this.  It’s also a product that’s in the news for positive as well as negative reasons.  We dedicated this episode to exploring what long-term care insurance is, whether it’s a good fit for you, and some other items you should consider before obtaining a long-term care insurance policy.  

If you have specific questions for us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode. 

Show Notes

[01:42] Background – What long-term care insurance is, what it covers, and how long-term care insurance policies evolved over the years. 

[09:24] Statistics – Grant reviews statistics from the US Department of Health and Human Services about the percentage of people who are going to need long-term care assistance in their life. 

[12:27] Deciding Whether You Need It – Why you should consider your financial status when you’re thinking about obtaining a long-term care insurance policy. 

[15:15] State Facilities – Things you should keep in mind if you’re considering a state facility for long-term care. 

[19:09] When to Obtain Long-Term Care Insurance – Grant shares his take on the ideal age for obtaining a long-term care insurance policy and the reasons behind it. 

[22:27] Pricing Issues – Grant explains how the way long-term care insurance pricing was structured in the early years and how it affected the premiums over the next couple of decades. 

[27:52] Drawbacks – Grant explains how the premiums may further increase in the future and some alternate options you can use to make the situation better. 

[31:30] Practicality of Long-Term Care – Important things to keep in mind if you’re planning to take care of your loved ones yourself. 

Resources

What is Long-term Care Insurance? - longtermcare.acl.gov/costs-how-to-pay/what-is-long-term-care-insurance/ 

Long-term Care Providers and Services Users in the United States - US Department of Health and Human Services: www.cdc.gov/nchs/data/series/sr_03/sr03_43-508.pdf