Long-term care insurance is one way you may pay for long-term care. This type of insurance will pay or reimburse you for some or all of your long-term care costs. Long-term care insurance is an increasingly confusing and complex form of coverage.
The Delaware Department of Insurance has dedicated teams for assisting consumers with home and auto insurance, health coverage and Medicare.
“Increasing contact from residents has shown us the necessity of highlighting the support we can provide to Delawareans considering long term care insurance,” said Commissioner Trinidad Navarro.
1. Do you need to buy long-term care insurance?
Whether you should buy a long-term care insurance policy depends on your age, health, overall retirement goals, income and assets.
However, carefully consider whether buying a policy makes financial sense. If you can’t afford the premium or aren’t sure you can pay the premium, including any increases for the rest of your life, long term care insurance isn’t for you.
If you already have health problems that could lead to long-term care (for example, Alzheimer’s disease or Parkinson’s disease), you probably won’t be able to buy a policy. Insurance companies have medical underwriting standards to keep the cost of long-term care insurance affordable.
If companies didn’t have these standards, most people wouldn’t buy long-term care insurance until they needed long-term care.
Remember – Not everyone should buy a long-term care insurance policy nor rely solely on long-term care insurance. Paying for long-term care can be done by combining different sources, such as assets, income and long-term care insurance. For some, a policy is affordable and worth the cost. For others, it may be unaffordable.
You should not buy long-term care insurance if the only way you can afford to pay for it is to not pay other important bills.
Look closely at your needs and resources. Talk with family members, a friend or a trusted and knowledgeable financial professional to decide if long-term care insurance is right for you.
2. Is long-term care insurance right for you?
You should not buy long-term care insurance if:
• You can’t afford the premiums.
• You don’t have many assets.
• Your only source of income is a Social Security benefit or Supplemental Security Income (SSI).
• You have trouble paying for utilities, food, medicine or other important needs.
• You are on Medicaid.
You may want to consider buying long-term care insurance if:
• You have many assets and/or a good income.
• You don’t want to use most or all of your assets and income to pay for long-term care.
• You can afford to pay the insurance premiums, including possible premium increases.
• You don’t want to burden family or friends.
• You want to be able to choose where you receive care.
If, after careful thought, you decide that long-term care insurance is right for you, check out the company and the agent – if one is involved – before you buy a policy. If you have questions about licensing, contact the Delaware Department of Insurance at 302-674-7300, or visit Insurance.Delaware.gov.
