Many older adults consider purchasing long-term health care insurance because they are worried nursing home care could eat up their life savings or put them into poverty. More important than long-term insurance is having Medicare supplemental insurance. Most people want to be in their homes as long as possible, but custodial care in the home can be very expensive. Prices have risen since then. Yet, Goebel said long-term health insurance can be costly, too.
Many policies also have restrictions on benefits.
Benefits on these kinds of policies do not include any in-home care. Goebel added that most policies also will not cover anyone with a pre-existing condition, such as Alzheimer's or heart disease. Goebel recommends that people should not purchase long-term health insurance if they have limited income that would make premiums a hardship, or if they might qualify for Medical Assistance because of combined low income and low assets. Some policies last only two years. The Helpline staff also can discuss policies and coverage with you.