• Steve 


    San Francisco, CA

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  • Hi,

    Given that you have significant retirement savings but not so much that you can self insure against an extended long term care need you may want to explore the costs vs. benefits of getting the insurance.

    We have an section on long term care that includes an explanation of when it can be useful:

    Another alternative you could explore is longevity insurance or a deferred annuity - these tend to be less expensive since they start paying a benefit closer to or at your projected mortality date. However, unlike long term care if you are alive you will get the benefit. One of the issues with long term care is that qualifying for benefits can be subjective - the insurance company has to agree that the beneficiary needs help with some number of "ADLs" or activities of daily living. Another issue is that in some cases premiums can rise over time and then the insurance become less attractive, but you have already paid into it.

    There are an increasing number of "hybrid" products that can function provide a some combination of long term care coverage, a life insurance death benefit and liquidity - the ability to get your money back out.

    Hope this is helpful. If you would like us to put you in touch with a financial advisor who can help with these kinds of questions you can use this form:

  • Login to rate this answer:   Answered on 8/14/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.