Why Purchase Long-Term Care Insurance?

Shawn Plummer

CEO, The Annuity Expert

We’ve all heard the old adage, “Hope for the best, but prepare for the worst.” It might sound cliché, but in the world of personal finance and health, it’s a mantra worth living by. This is particularly true when we talk about long-term care insurance. You might be wondering, “Why purchase long-term care insurance?” Let’s dive deep into this and understand its significance in our lives.

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Protecting Your Finances

Why is it Important?

As we age, the need for specialized healthcare services increases. These services, unfortunately, don’t come cheap. Without proper insurance, the costs can quickly eat away at your life’s savings.


Imagine you’ve saved $300,000 for your retirement. Sounds comfortable, right? Now, let’s say you require long-term care for just two years at an average rate of $100,000 a year (a conservative estimate). Without insurance, half of your savings would vanish!

Offering Peace of Mind

Why is it Essential?

Purchasing long-term care insurance is not just about money; it’s also about peace of mind. Knowing that you won’t be a financial burden on your loved ones or struggle to meet care costs is invaluable.


Sarah’s father needed specialized care during his last years. Without long-term care insurance, the family faced both emotional and financial stress. Sarah decided she didn’t want her children to go through the same ordeal, so she opted for long-term care insurance.

Flexibility in Care Options

Why is this Beneficial?

Long-term care insurance provides flexibility in choosing the type of care you receive, be it at home or in a specialized facility. You aren’t restricted by tight finances, which often limit choices.


James had long-term care insurance and when he needed care, he had the choice of hiring an in-home professional caregiver or moving to an assisted living facility. This wouldn’t have been possible without his insurance cover.

Asset Protection

Why Protect Your Assets?

Insurance doesn’t just cover the cost of care; it also protects your assets. In many states, having this insurance allows you to protect your assets if you need to apply for Medicaid to assist with long-term care costs.


Anna, a resident of a state with such provisions, purchased long-term care insurance. When her health deteriorated, and costs escalated, she applied for Medicaid without having to sell her house or drain all her accounts.

Ensuring Quality of Care

Why is Quality of Care Crucial?

With insurance, you’re not just relying on whatever care you can afford, but you can access quality care that ensures comfort and dignity during challenging times.


Mike’s long-term care insurance allowed him to stay in a top-tier assisted living community with numerous amenities and professional staff, ensuring he received the best care possible.

Next Steps

The question is not “Why purchase long-term care insurance?” but rather, “Can you afford not to?” It’s an investment not just in your future healthcare but in your peace of mind, your assets, and your quality of life. In a world rife with uncertainties, it’s one step you can take to ensure that, come what may, you and your loved ones are taken care of. Remember, when you invest in long-term care insurance, you’re investing in a secure and comfortable future for both yourself and those you care about most.

Why Purchase Long-Term Care Insurance

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Frequently Asked Questions

Who is the typical purchaser of long-term care insurance?

The typical purchaser of long-term care insurance is often a middle-aged or older individual, financially comfortable but not extremely wealthy, concerned about future healthcare costs, and wanting to protect their assets.

Do most long-term care insurance policies provide lifetime care?

No, most long-term care insurance policies do not provide lifetime care. They generally have a benefit period ranging from a few years to a specific dollar amount cap, after which coverage ends. “Lifetime” or “unlimited” options are rare and significantly more expensive.

What is typically covered by long-term care insurance?

Long-term care insurance typically covers assistance with activities of daily living (ADLs) like bathing, dressing, and eating. It may also cover home healthcare, assisted living, adult day care, and skilled nursing facility costs. Coverage varies by policy.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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