Question: My wife and I have been debating whether or not to buy long-term care insurance. We are in our mid-60’s, and I am still working. Counting my 401k plan and investments, we have more than $400,000 in assets plus our home. Our children are all grown. We are both in good health, and our parents are still thriving and in their late 80’s. Neither of us has any family history of any type of long-term care. But in case we do, our unmarried daughter, who lives with us, has promised to take care of us. We have just about come to the conclusion that we do not need this coverage. We don’t think the cost justifies the benefit. Are we missing something?

Answer: We believe you are. While good genes and family histories are all well and good, you can’t predict your health future. That’s why life insurance companies use actuaries. Even though your health and longevity may be shaped by your family medical history and lifestyle, the longer you live, the more likely you are to suffer a chronic illness of old age that could require long-term care. Sometimes, a spinal or head injury brings on the need for long-term care. Long-term care insurance is purchased to prepare for the unknown and unlikely, not to speculate on probabilities.

Why? Because unplanned long-term care expenses can devastate personal assets very quickly. While Medicare and Medicare Supplement policies may help pay for nursing home care for short periods of time during rehabilitation and when skilled care is necessary, protection for the long-haul is, in our view, essential.

Long-term care insurance may be right for some, but not for others. If you have sufficient income to not only cover long-term care expenses, but also to provide the community spouse with a similar standard of living without depleting principal savings, you probably don’t need long-term care insurance. However, most folks do not fall into this category.

And -- we believe -- reliance on the promises of an adult child or other family member to provide care is foolish. No one knows what the future may bring. People change their plans, marry and move away, become disabled themselves, or die. How many potential caregivers do you know who are willing to plan years or decades in advance to provide care for aging family members? Not many.

If you are concerned about the cost of the coverage, you can increase the “elimination period” which is similar to the “deductible” in homeowner’s insurance. In long-term care parlance, the “elimination period” is the number of days you self-pay before the policy kicks in. The longer the elimination period, the lower your premium. Or you can reduce the daily benefit amount or not take an inflation rider. And, if you like, you can reduce the benefit period from life to five years or even three years.

But don’t let cost alone drive the decision-making process. Make sure the qualification criteria is not too restrictive. Don’t sacrifice policy benefits. Some policies will make payments to family caregivers. So if your daughter is willing to stop her job and take care of you, under certain circumstances, she will be able to receive remuneration. Avoid policies which require a prior hospital stay before you can collect benefits. Make sure the policy covers not only nursing home care, but also assisted living and home care.

Private long-term care financing through self-funding and insurance will not only reduce the need to use overburdened public programs, but also will allow you and your wife to remain in better control of your care.