Long Term Care Insurance (LTCI) is available to everyone throughout the United States, regardless of sex, gender, or sexual orientation. That’s certainly true for members of the LGBTQ+ community. Long Term Care Insurance for LGBTQ+ seniors works the same way and offers the same protections as it would for anyone else. However, there are some special considerations that members of the LGBTQ+ community may wish to take into account when making policy choices.
LTCI for LGBTQ+ individuals can help you feel more secure about your future–and your finances (especially as you age). After all, something like 70% of people over the age of 65 will need long term care at some point. It’s best to be prepared for it.
What is Long Term Care Insurance?
Long Term Care Insurance for LGBTQ+ folks offers protection against the costs of a specific type of health care called long term care. This added insurance is needed because long term care needs will likely not be covered by standard health insurance (this includes Medicare. Medicaid will cover these costs, but only after you’ve spent down enough of your assets first). LTCI is designed to close this gap in coverage. Once activated, your policy will pay a certain portion of your long term care expenses or give you an added pool of funds to draw on, depending on the details of your policy.
Those without LTCI policies are often forced to pay out of pocket for care, relying on family or community connections when personal funding is inadequate. This makes it especially important for individuals and communities who have smaller or systemically stressed support systems to have an extra layer of protection.
LTCI policies can also help ensure that your family or loved ones have the resources to carry out your long term care wishes. For example, the right LTCI policy can help you stay in the nursing home or care facility of your choice.
Types of Long Term Care Insurance
There are several types of Long Term Care Insurance available. In very broad terms, the two most common types are:
- Traditional plans: These plans work the same way your health insurance or car insurance works. You make regular payments, and when your policy is activated, you’ll receive a specific payout.
- Hybrid plans: These plans couple a Long Term Care Insurance policy with a full term life insurance policy. The idea is that if you never need long term care, your policy will still pay out as life insurance. The benefits are passed along to your designated beneficiaries.
Your LTCI plan can be customized and tailored to meet your needs, so it’s always a good idea to talk with a financial planner or a LTCI specialist to see what options best suit your goals.
Benefits of Long Term Care Insurance for LGBTQ+ Individuals
For LGBTQ+ folks thinking about the need for long term care, there are some compelling reasons to invest in Long Term Care Insurance:
- LTCI can protect you against big expenses: The cost of healthcare is constantly rising (often much faster than inflation). Paying a set amount for LTCI can help protect you against many of those rising costs in the long run.
- LTCI helps loved ones feel some peace of mind: Your loved ones may not want to become your caretakers–at least, not for a long duration. LTCI can help ensure your loved ones feel more certainty when they think about their future.
- LTCI helps communicate the kind of care you’d like: LTCI can help ensure you and your loved ones have more options when it comes to your long term care. The more resources you have, the more agency you and your loved ones will be able to exercise over your care.
- LTCI provides peace of mind–and financial security: It’s impossible to predict when someone might need long term care. LTCI means that you and your family or loved ones won’t be caught flat-footed and unprepared when that day finally comes.
These benefits are not necessarily unique to the LGBTQ+ community–but their value may be especially pronounced. LTCI helps ensure that you are protected when a long term care event occurs.
So When Should I Start Looking at Policies?
Ideally, you would want to purchase your LTCI policy as soon as possible. The older you get, the more expensive your premiums will become. But most financial advisors typically recommend that you have other aspects of your financial wellness in order first.
For example, many experts and LTCI specialists will recommend ensuring you have ample savings in your emergency fund, have a solid retirement savings plan going, and your kids’ college funds are healthy. Once those financial boxes are looking good, it’s probably time to start thinking about your Long Term Care Insurance policy.
Discounts for Couples
It’s important to note that many insurance carriers offer discounts for married couples who purchase LTCI policies together. For LGBTQ+ folks, it might be a good idea to look into your state’s local laws regarding civil and domestic partnership (if you aren’t married) to see if you may still qualify for these discounts.
Protect Yourself, Your Community, and Your Future
The future is always uncertain. But Long Term Care Insurance helps you exert a small amount of control in a very important area of your life–and that can mean significant peace of mind. If you have questions about LTCI for your community or have specific questions related to LTCI for LGBTQ+ communities, contact us today to schedule a conversation!
To help determine if long-term care (LTC) insurance is right for you, we are offering a FREE informational guide. This is a comprehensive booklet that will answer many of your questions about LTC and assist you with your health care planning.
To help determine if long-term care (LTC) insurance is right for you, we are offering a FREE informational guide. This is a comprehensive booklet that will answer many of your questions about tax breaks and incentives for LTCI for federal and state taxes.