It depends on what you have to protect and how you'd pay for care without it. Here's a simple way to think it through.
Who usually doesn't need it
- People with very limited savings, who would likely qualify for Medicaid quickly
- People with very large estates who could pay $300,000+ for care without changing their plans
Who usually does
The middle: people with roughly $200,000 to a few million in savings, a home, and a spouse or children they'd like to protect. A long care event can spend down a large share of that, and Medicare won't cover ongoing custodial care.
The two objections, and the fix
Most people resist traditional LTC insurance for two reasons: premiums can rise, and if you never need care the money is gone. Asset-based (hybrid) coverage answers both, with guaranteed premiums on many designs and a death benefit or account value if you never use it. It costs more per dollar of benefit, and that's the trade-off.
A quick test
Run your numbers in the cost calculator. If paying that total from savings would change your spouse's retirement or your kids' inheritance, coverage is worth a look.
Questions
What percentage of people use their long-term care insurance?
Usage varies by policy type and age at purchase. What's certain is that a large share of people turning 65 will need some care, and hybrid policies pay out either as care benefits or a death benefit.
Is it too late to buy at 70?
Not always. Coverage costs more and underwriting is stricter, but hybrid life/LTC and annuity/LTC options are available into the 70s and sometimes later.