Before You Buy Long-Term Insurance Coverage

Things you should ask before you buy

Long-term care insurance is a relatively recent product. Fifty years ago, few people needed it—most didn't live past their early 60s, and extended families typically lived near each other, making multigenerational caregiving both feasible and expected.

First, determine if you need long-term care insurance.

If you'll have enough income throughout your life to pay for nursing home care and personal assistance, you may not need insurance. The basic rule is simple: insure only what you cannot afford to lose in a single payment.

If your family tends to live into their late 80s or 90s, you're more likely to need coverage. The opposite is true if your relatives typically die in their early 70s or if you already have serious health problems.

Ask your employer whether they offer a group plan. Group policies cost less than individual ones. Before accepting a job elsewhere, confirm that you won't lose access to this coverage.

Some employers now pay part or all of the premium. This is becoming more common as companies recognize that employees value long-term security.

Check with your employer first if your family has a history of living into their 90s. Group rates are usually much cheaper than buying on your own.

Before you buy any policy, read it thoroughly. Understand the conditions, exclusions, your costs, and what circumstances could cancel your coverage.

Use the questions below to compare policies. There's no single right answer, but weigh each factor against your own situation and needs.