Traditional long-term care insurance

This choice has been around for decades but isn’t as cost-effective as it used to be. For a senior choosing to buy traditional long-term care insurance today, it could lead to regret in the future.

Why? With rising policy premiums and stricter state reserve conditions, there are very few insurance companies to choose from nowadays.

Besides that, unless a return-of-premium rider were purchased in the past, an attribute not offered on newer policies, your traditional long-term care insurance policy would have no value today if it lapsed or you passed away. Another option is short-term care.

Unlike paying for long-term care policies that can provide you with years of coverage, short-term care policies will generally cover you for a year or so. The benefits aren’t as great as a traditional long-term care insurance product. But it’s still better than nothing.