Long-term care insurance (LTCI) is usually a good idea for someone 55 to 70 who wants to avoid the potential financial hardship that can occur if a nursing home or home-care becomes necessary. The U.S. Dept. of Health and Human Services estimates nearly 70 percent of people who reach age 65 will need long-term care at some point. That statistic of course applies across the board, including in Texas. Unfortunately, less than one-third of people over age 50 have begun to plan for their potential long-term care needs.
An LTCI policy will pay a daily amount to the provider based on the coverage purchased. The premium is based on age, extent of coverage, health and similar factors. Although seniors have often been reluctant to be bound to a premium for years on end, it may be possible to limit that period to five years.