LTC Insurance may protect your estate from being dissipated by long-term care costs and protect you from becoming dependent on family members and friends.

Medicare and supplemental insurance do not significantly address long-term care costs; only LTC Insurance is designed specifically to pay for your long-term care needs.

While the average length of stay in a nursing home is less then three years, 12% of men and 19% of women will stay for more than five years. People can remain at home with care even longer. There may be more than one period of need followed by a return to independence.

Can you afford to co-insure for care? To reduce premiums, you might consider allocating some of your disposable income or a small amount of assets towards long-term care costs. Full self-insurance is generally not fiscally sound.

The longer the elimination period, the lower the premium, but the greater the amount of money to be spent during the deductible period. Consider your unique situation and the impact of inflation over the years.

Single premium annuities are useful to provide a stream of income to cover the cost of LTCI premiums.

Inflation protection is essential. While the best policies offer 5% compound inflation, a 5.7% factor is actually required to keep up the projected cost increase in the next twenty years.

Many people with medical conditions may be eligible for insurance. While some carriers will place a surcharge on the premium, it may still be a good value.

The divestiture of assets to obtain Medicaid may create a tax obligation far more costly then the premium of a long-term care policy, especially if you have highly appreciated assets or an IRA or pension fund. If you do transfer assets, consider insurance to bridge the gap until the penalty period is over.

Some states offer Partnership Plans with asset protection for the Medicaid Program. Income guidelines and residency requirements prevail.