Understanding Long-Term Care Insurance

A complex decision for middle-class individuals, with costs and benefits varying widely.

Long-term care insurance is a complex decision for middle-class individuals, as it's difficult to predict finances or health decades into the future.
The insurance is for people who may develop permanent cognitive problems or need help with basic daily tasks, covering costs for personal aides, adult day care, or institutional housing.
Policies generally pay a set rate per day, week or month, with some policies paying family members who are providing the care.
In 2022, a 60-year-old man buying a $165,000 policy would typically pay about $2,525 annually, with a woman of the same age paying $3,300 for the same policy.
Insurance may be worth it if the value of all savings and possessions excluding the primary home is at least $75,000.