* Beware of bundling. Bundled products have emerged in response to the irrational belief of many consumers that this kind of insurance is a waste of money if they don’t end up using it. These products combine long-term care insurance with life insurance. This is a strategy to sell you a lot more than you probably need. There are often two problems with this: 1) Depending on your situation, you might not need any more life insurance, and 2) even if you do, you might be able to get life insurance and long-term care insurance at better rates when purchasing them separately. If you’re offered this product, break out the policies and shop them around separately against competitors’ products.
Given the chances that you’ll need long-term care, obtaining coverage can give you peace of mind, especially if you’re a woman. Remember that delaying can cost you money, because the younger you are at the time of purchase, the lower your premiums will be.
Any opinions expressed here are solely those of the author.
Laura Mattia is a partner with Baron Financial Group, and a fee-only financial advisor. She's a Certified Financial Planner professional (CFP®), a Chartered Retirement Plan Specialist (CRPS®) and a Certified Divorce Financial Analyst (CDFA™) and holds an M.B.A. in accounting/finance. Her Internet radio show is Financially Empowering Women™ with Laura Mattia. A former professor at the Rutgers University Business School, Mattia is completing a Ph.D. in financial planning from Texas Tech University; her dissertation is on how to help women plan for retirement.