Long Term Care Insurance Makes Financial Sense

8/22/2010

When it comes to retirement planning, long term care insurance is a crucial component that should not be overlooked - even for individuals who may already be retired.

Writing in her "A Wealth of Knowledge" blog on the PBS website, Michelle Singletary recently advised a 76-year-old reader to consider long term care insurance because the monthly cost of premiums could be far lower than the costs of future care needs.

"When considering this type of insurance, think about the assets that you would have to spend down should you need long-term nursing home care. If you have assets, or want to keep them for your heirs, buying this insurance is definitely something to consider," writes Singletary.

An investment in long term care insurance can help allow for more financial stability during one's retirement years.

After all, Medicare does not cover many important expenses that people will face, such as nursing homes - which have only seen their costs rise dramatically in recent years. Even those who do not require a nursing home may still need a home health aide, whose services would also be covered under long term care insurance.