YOU ASK:

If I have a pension do I need long term care insurance?

WE ANSWER:

Having your retirement pension can be a big help in providing for your needs. However, the pension may not be enough to cover the cost of long term care. This kind of specialized care does not come cheap. And you won't just be spending for long term care, you also need to make sure that your daily needs (housing, utilities, food and medications) are also provided for. So with all these expenses combined, relying solely on your pension may not be the best solution.

The cost of long term care depends not just on the type of care provided, where it is given (whether in the nursing home or in one's own home), as well as the state in which you receive the care. The costs may also be paid monthly, daily or on a per hour basis.

Even if you choose to receive care at home, it can still be expensive and can eat up on your pension, if your pension is the only resource that you depend on. You may be even forced to look into your assets for the money to finance your long term care.

That is why even if you have a pension, it is still highly recommended that you get long term care insurance. Your insurance will cover such services such as:

  • In home nursing care and therapy (including speech, physical, occupational or rehabilitation therapy). This type of care can also help with your day-to-day activities.
  • Hospice care
  • Health care centers for adults
  • Assisted living or residential care facilities
  • Nursing homes
  • Special care facilities for those with special needs (such as patients with Alzheimer's disease)

If you are unsure that you will be needing long term care, you can still buy the insurance and just include non-forfeiture options or return of premium riders so that you can recover some portion of the premiums you have paid. That way, you have the cover present in case you need it, but you can also recover your payments in case you won't.

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