Whether you should own a long-term care insurance policy depends on a myriad of factors, including but not limited to affordability, family medical history, your liquid net worth and your cash flow needs in retirement. It also depends on your ability to make consistent premium payments to ensure your policy stays in force over time.

Since a Long-Term Care plan requires you to keep paying the (steep) premium until you actually start to use the coverage – or you’ll lose it, it may not be a great idea to buy the policy if you have financial insecurities in the near (or even distant) future.

That being said, a long-term care insurance policy can be an effective way to cover the bases that Medicare does not, while also protecting your nest egg from being spent-down as a result of needing to pay for care. Ultimately, you should consult your financial advisor to see if long-term care coverage can and should fit into your overall financial plan.

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