20 Oct We’re thinking of long-term care insurance. Thoughts?

Q. I’m 56 and my wife is 51. We are thinking of buying long-term care insurance sooner or later. Can you recommend any high ranked insurance companies who carry good products that will fit our needs?
— Planning

A. Long-term care insurance can be a very smart investment.

For starters, though, we can’t recommend specific companies or plans. You would have to see what plan may meet your budget and expected need. And that’s a very personal thing.

But let’s consider what you should look at.

For individuals who reach the age of 65, there’s a 70% chance that they will need long-term care, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

The costs in New Jersey for this skilled nursing care continues to rise with monthly averages of $2,534 for 20 hours/week of home care, $6,495/month for assisted living, and $11,253/month for a nursing home, she said.

“It is recommended that you purchase this ideally by your mid-50’s as the premiums begin to increase sharply and health concerns could make you uninsurable or the premiums higher,” she said.

D’Agostini said there are many “A” rated companies.

“I would recommend staying with one that is financially very strong, since the need for this may be far in the future for you both,” she said.

You should also know there are different kinds of plans out there.

There are pure long-term care policies, which are “use it or lose it,” D’Agostini said.

You pay the premium up until you go on claim, but if you never use it, then you essentially have paid for nothing except the satisfaction of knowing you are covered should the need arise, she said.

“More recently, many individuals are securing life insurance policies that have a long-term care rider,” she said. “This is what I am recommending now. You would obtain such a policy and will be able to tap the death benefit for a monthly amount that can be used to defray long-term care costs.”

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This story was originally published on Oct. 20, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.