Needing Long-Term Insurance

Kathy wants to know if she should get long-term care insurance. She's 63 years old and unmarried. She has about $4,000 in savings and lives off a pension and Social Security.

QUESTION: Kathy in Buffalo wants to know if she should get long-term care insurance. She’s 63 years old and unmarried. She has about $4,000 in savings and lives off a pension and Social Security. Dave thinks she needs it but isn’t sure she can afford it.

ANSWER: If you are 60 years old, you should. It’s that easy. But you may not be able to afford long-term care insurance. It’s expensive in your situation. You don’t have much margin or wiggle room. You don’t have much money saved or coming in.

You said you found a company that will give you a basic plan for $100. If you can scrape together $100 from your budget, it is certainly a good idea to insure because the only other option, if you don’t have money for nursing home care from a policy or money in an account, is government-provided nursing home care, which is basically welfare.

If you can squeeze the $100 out, then it’s certainly something to think about.