Is it really worth it to purchase long term care insurance? It appears so for many when you consider that according to the Met Life Mature Market Institute the average cost of a nursing home is about $61,320 annually. The general rule of thumb is that the richer you are then you can get away without purchasing long term care insurance because you can self insure and the poorer you are then you can get away without purchasing long term care insurance because you may be more likely to qualify for Medicaid benefits (note that Medicaid does not often offer comprehensive long term care coverage and if it does offer coverage then it only pays benefits to those with very low income and assets).

The trouble then lies with the majority of middle class Americans who lie right in the middle of the rich and the poor. It is advised by many that almost all middle class Americans should purchase some form of long term care insurance policy. The important thing is to purchase the LTC policy before you actually need it – i.e. when you are healthy enough to qualify for coverage (and at affordable prices). Many financial planners advise their clients that in order to keep the long term care cost reasonable to consider a policy when they reach the age of 50.

Aside from financial measures such as net worth and liquid assets that will help you determine if you need long term care insurance there are also health factors to consider. You will want to pay close attention to your family healthy history and any chronic conditions that you or your relatives have suffered through as this may cause you to be prone to these type of ailments in the future. Keep in mind that all health insurance plans do not typically offer any type of long term care benefit so even if something should happen to you before the age of 65 and you have adequate health insurance coverage then that does NOT mean that you will receive long term care benefits.

Taking it a step further; the health of your spouse and loved ones should also be taken into consideration. Are they healthy enough to take care of you at home if you need long term care and opt out of a facility? Would caring for you place a financial or emotional strain on the relationship? These are all important things to contemplate when making the sometimes difficult decision about whether to purchase long term care insurance or not.