Although long-term care insurance can be used by people of any age, it is always a very valuable addition to a retirement portfolio.
Long-term care insurance (LTC coverage) can protect your retirement savings from being consumed should you have a qualifying event that requires paid long-term care services at home or in a medical- or assisted-care facility. Sometimes, a policyholder will recover and go back to life as normal — for example, after a stroke or an accident. Sometimes, a patient will need paid care until death. Either scenario could use up a family's savings. Long-term care insurance can help by paying for qualified expenses and leaving retirement assets intact.
A variety of riders can be purchased. Some protect against inflation's effects on your benefits, and some guarantee the return of your premiums upon death. Long-term care insurance may carry tax benefits as well, and some companies offer dividend eligibility after a certain number of years.
There are many options for waiting periods, co-payments, special benefit riders and insurer payment limits, so ask your agent or broker about your choices.