Long-term care insurance ‘good investment,’ aging expert says

"I knew I wasn't going to live forever and there was a middling chance in my older years I'd need medical attention or to be institutionalized," said Bastian of his reasoning for purchasing long-term insurance that would cover expenses to help with daily living, respite, hospice or adult day services in a home or facility setting without "depleting our savings or burdening our (three adult) children."

The insurance is particularly helpful as the expense of caring for the elderly and infirm is rising, especially in facilities where costs have gone up nationwide nearly 19 percent between 2021 and 2023. The monthly cost of a semi-private room in a Pennsylvania nursing home is $10,768 and the monthly cost of a room at an assisted-living facility is $5,550, according to a 2023 Genworth Cost of Care survey.

Long-term care insurance is usually a "reactionary product" purchased when people need it most, said Truman Purdy, a certified long-term care insurance provider with Purdy Insurance Agency Inc. in Sunbury.

"It's not something on the forefront of people's minds until something happens. No one wants to think they're going to die or need someone to care for them," he said, recommending clients consider buying insurance to cover long-term care needs at the age of 40. "We're always the youngest and healthiest today."

Long-term care insurance options are many and can be tailored to an individual's needs.

"It's a good investment for those that can afford it," said Holly Kyle, executive director of the Union-Snyder Agency on Aging.

As a child visiting nursing homes where his grandparents lived out their lives and seeing his now 102-year-old father-in-law residing in a nursing care facility in Danville, Bastian said he was well aware of the potential needs that would arise as he aged and the "sky-high costs" of assisted living care.

The notion of long-term care insurance is considered by some as "old age insurance," said Purdy, but there are other reasons to consider buying a plan.

"It's stinky things to think about but you could have a stroke or a car accident. A long-term care policy can be a disability policy for retirement protecting income for you and a spouse," he said.

It's a purchase Bastian doesn't regret 15 years later even as he enjoys retirement from Merck and his wife continues to work in the health field. By obtaining long-term care insurance at a younger age, he was able to avoid three times the premium costs he'd pay if he purchased it now as he nears 70.

And he has "peace of mind knowing my bank account won't be broken, but I'll have necessary care if I need it."

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