Secure Your Future: Is Long-Term Care Insurance Right for You?

What is Long-Term Care Insurance?

Long-term Care insurance is often designed to cover long-term services and support, including personal and custodial care in areas such as your home or a continuing care community. These policies reimburse policyholders a daily amount up to a preselected limit and cover common activities such as bathing, dressing, and eating. The cost of a long-term care policy is based on a few aspects, such as age, the maximum amount paid per day, the maximum amount of years the policy pays, and any additional benefits you choose.

It’s important to remember that long-term care insurance policies have limits on the amount they cover per day or for how many days they will cover. Some policies may cover your care for two to five years, while others may cover your care for a lifetime. It is generally recommended that before you buy a policy, you should be aware that the insurance company may raise the premium, so it is always a good idea to ask for their premium rate history.

How to Know if Long-Term Care Insurance is Right for You

Nearly half of the US population aged sixty-five and up will need long-term care at some point, which means that many will also benefit from long-term care insurance as well. In recent years, long-term care insurance policies have become more expensive for both new and existing policyholders, so it’s essential to research and stay current. Traditional Medicare, the public health insurance available to those sixty-five and older, does not cover long-term care except directly after a hospital visit, and even then, it’s limited. You should consider the below factors before deciding to purchase a long-term care insurance policy:


A general rule of thumb is that a long-term care insurance policy should never take up more than seven percent of your income. Keeping this in mind, it’s smart to ensure that you are first able to cover necessities like medicine and utilities before considering a long-term care insurance plan.


If you are looking to use this policy to protect assets for heirs or yourself, it’s most beneficial if you have at least $75,000 in assets outside of your primary home. If you have less than $30,000, you may pay more in premiums, making the policy useless.

Range of Options

When researching policies, it’s important to understand the full scope of available options. For this reason, it’s best to talk with multiple companies and financial advisers who can better explain your options to you. Since states regulate insurance, your options can vary greatly depending on where you live, so it’s ideal to be informed of the costs in your state.

Age and Health

Typically, the older you are, the more expensive the long-term care insurance will be. Also, health problems usually make your policy more expensive. In extreme circumstances, specific health issues make it impossible to receive coverage, such as extreme memory loss or severe trouble with daily self-care. 

How to Pay

Covering premiums with an HSA (Health Savings Account) is possible. Another option is to take advantage of tax advantages by exchanging existing life insurance with a long-term care policy. Although it can be complicated, it’s typically a good deal for those with changes in insurance goals. 

Group policies offered through an employer are usually more affordable than individual policies, especially if you have health problems. Additionally, if you purchase a policy as a couple, it will often reduce your premium. Lastly, in most states, you can shop for a limited number of policies that are a part of the state’s Medicaid program. These specific policies will ensure that you and your survivors can keep more of your assets if you ever need Medicaid since your protected amount is based on what your policy has already paid.

Seafields Continuing Care Retirement Community

At Seafields at Kiawah Island, we preserve your independence while helping with essential daily tasks. Our team of professional caregivers adapts to your unique needs and provides unparalleled care not found anywhere else. The size and floor plans of the assisted living facilities directly mirror the independent living ones, making transitions between care levels seamless.

With our modified Life Care benefits, residents can receive 90 days free in either Assisted Living or Skilled Nursing, and then a 40% lifetime discount off the private market rate for Assisted Living and a 20% discount off the market private pay rate for Skilled Nursing for 365 days. Our assisted living residences include numerous benefits, some of which are 24-hour on-site security, a full-service salon and barbershop, a high staff-to-resident ratio, medication management, and much more. Get in touch with us below to learn more about our available floorplans!

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