The Retirement Corporation of America

Do You Need Long-term-Care Insurance?

YOU BUY THIS coverage to help pay nursing-home costs. But while nursing-home care is expensive—currently in the neighborhood of $40,000 a year—long-term-care insurance (LTC) is a luxury that only the wealthy can typically afford.

The premiums on a good LTC policy for a 50-year-old man in good health are running about $700 a year—up to $3,000 for the same man at age 70. That's for a policy that would pay a maximum of $100 a day for three years with a Estate Planning 100-day deductible before it kicks in.

Unless you'll sleep better at night knowing you have LTC insurance—and can comfortably afford the premiums—you're better off taking the money you would have spent on this coverage and investing it instead.