How Having Long-Term Care Insurance Can Be a Family Affair

Today, people are living longer than at any other time in history. But, while that is certainly great news, it also means that more individuals are in need of long-term care – and, they’re needing that care for longer periods of time.

In most cases, the need for this type of care will start out gradually with a person just requiring basic assistance with activities like shopping or paying bills. In these situations, it is usually family members or other loved ones who will step in and offer a helping hand.

Over time, however, this informal caregiving can often become more time consuming – as well as take a toll on the care provider from a financial standpoint. This is because in many instances, the caregiver may need to cut back on the hours that they work in order to continue – or even to increase – the care that their loved one requires.

How LTCI Policies Can Benefit Families

A recent paper that was published on the National Bureau of Economic Research (NBER) website provided some interesting insight regarding just how beneficial owning a long-term care insurance (LTCI) policy can be – not just to the policy holder, but also to the insured’s family members and informal care providers as well.

According to the research, having this type of insurance appeared to reduce the use of an informal caregiver by:

  • Nearly 9% after two years
  • 6% after four years
  • 13% after six years

In addition, owning long-term care insurance coverage also appeared to reduce the likelihood that the policy holder would end up moving in with an adult child by approximately 24%. Related to this, having the insurance coverage also increased the probability that the adult child of someone with a care need would not be required to quit their job or even to reduce their working hours.

The Long-Term Care Insurance Advantage

There are additional benefits to owning long-term care insurance as well, such as the potential to deduct a portion of the premium as a medical expense on your taxes, along with receiving the benefits tax free.

Having long-term care insurance can allow you much more choice in how and where you receive your care – allowing for more independence. It will also keep assets in place so that they may be used for their originally intended purpose rather than spent – or spent down – for care, or for Medicaid qualification purposes.

To see if you can qualify for long-term care insurance, contact us. We work with more than 40 insurance carriers, and we can help you to locate the plan that works best for you and your family’s specific goals.




  1. 5 Ways Private LTCI Affects Entire Families (