As Americans live longer, long-term care insurance has grown in popularity over the years. The option allows seniors and family members to offset costs associated with retirement — everything from daily tasks like cooking to full-blown assisted living care and housing.
Does the insurance sound too good to be true? It depends.
Premiums for long-term care insurance aren't always cheap. And during the past few years, insurers have exited the sector because they underpriced premiums and Americans are living longer — raising the costs.
Deciding on long-term care insurance also depends on whether family care is part of the mix. Long-term care insurance typically prohibits policy holders from compensating family members, who provide care.
Another growing option to help pay for long-term care is life insurance with a long-term care rider. The optional rider benefit on variable universal life insurance policies allows individuals to use death benefits to help defray costs associated with chronic illnesses.
What about you and your family? Are you considering long-term care insurance an option?