This is the central question you need to ask yourself. Relying on family is an appealing option. You have their love and trust, and it’s comforting to know they would care for you and ensure your well-being.

But what many don’t consider is the difference between a companion and a caregiver. Having family to assist you is great, but relying on them day in and day out for your personal care can take a toll on their physical and emotional health. This is especially true when the caregiver is a spouse or partner also facing their own aging health issues. Plus, many caregivers suffer long-term work and financial consequences from providing care. Nearly six in 10 caregivers report some type of work impact like time off or change to their employment because of caregiving responsibilities.

In addition, half of caregivers experience a financial strain, and some are jeopardizing their long-term savings, which could result in substantial financial consequences.

So ask yourself this: "Is this what I want for my loved ones? Years of financial strain, on my behalf?"

Long-term care insurance typically covers both in-home care and care received at a specialized facility like an adult day care, an assisted living facility, a nursing home or a memory loss unit.

Long-term care insurance steps in if you develop a health condition that requires you to receive care and supervision. This could mean home health care, nursing home care or personal or adult day care. Many people mistakenly believe that Medicare or Medicaid would cover their care expenses, but this is often not the case. Without long-term care insurance in place, you may burn through your life savings or have no choice but to rely on a family member for care. Long-term care insurance is worth it because it protects your assets, spares your family from financial and emotional stress, and puts you in control of your health decisions.

There are many variables that go into deciding how much long-term care insurance you need. They include your budget, you and your family’s health history, your financial situation and the cost of care where you reside. Also, because almost all long-term care insurance policies are bundled with life insurance coverage (or an annuity), you will also want to consider that coverage level as well. A licensed insurance agent can help you consider your options and make the best choice.

One thing to think about is how much a home health aide costs. According to Genworth, the median cost of a home health aide in 2021 was nearly $62,000 per year. And according to a PwC study, the average person who needs long-term care will spend $172,000—imagine what the cost will be in the future with inflation.

While the cost of long-term care varies by facility and by where you live, it’s safe to say the cost is considerable. Long-term care costs range from $19,240 per year for adult day care to $105,850 per year for a private room in a nursing home.

This kind of expense can quickly deplete your nest egg, which is why long-term care insurance is such an important coverage to consider.

Many people are surprised to learn that long-term care coverage costs less than they imagined. You may even be able to deduct the cost of long-term care insurance premiums from your state and federal taxes.

In reality, the average premium is about $2,500 annually.

Sure, that’s not a trivial amount, but compared to the cost of care… there is serious value in coverage.

There are three main types of long-term care insurance:

• traditional long-term care insurance
• hybrid long-term care insurance
• life insurance with a long-term care rider

Each type of coverage has different pros and cons worth considering.

Today, most long-term care insurance policies come bundled with life insurance coverage.

Because both long-term care insurance rates and life insurance rates generally increase with age, it’s best to start shopping for a hybrid life insurance and long-term care policy when you’re in your 40s or 50s. That said, you can still buy a policy if you’re in your 60s or older⁠—just know that you’ll probably pay more than someone who’s younger.

In one example, a 50-year-old couple who purchases a long-term care insurance policy with a $200,000 benefit for each spouse growing at 3% annually would pay a combined annual level premium of $3,573. If they waited until age 60, their annual premium would instead be $4,606. Not to mention that by age 85, the 50-year-old purchasers would have a much higher benefit level because their policy would have grown for 10 additional years at 3%!

So, the answer is this: buy today. Not tomorrow. Today.

There's no better way to move forward with purchasing long-term care insurance than to reach out to a qualified professional. The Hanna Agency has one endeavor, and that is to educate people about their choices. We are not trying to sell you insurance. However, we are able to, under certain circumstances, to do so, if that is what you want.

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