Who should not buy long-term care insurance?

Long-term care insurance fits a specific financial middle ground well — and fits poorly outside it. A few situations where it is usually not the right call:

• Very limited savings and income. If a premium would strain your monthly budget, or you have few assets to protect in the first place, Medicaid may end up being your realistic funding source regardless — and paying premiums for years first can leave you worse off.
• Substantial wealth relative to likely care costs. If you could comfortably self-fund years of care from savings without materially changing your lifestyle or your heirs' inheritance, a policy may add cost without meaningfully changing your options. Even so, many high-net-worth families still choose coverage for tax or asset-protection reasons — see asset-based strategies.
• Health conditions that make coverage unaffordable or unavailable. If underwriting pushes your premium very high, or you do not qualify at all, other funding strategies may make more sense than chasing a policy. See what typically affects eligibility.
• Very advanced age with a short time horizon. Most carriers set a maximum issue age, and premiums late in life can be steep relative to the likely benefit.

Between these extremes — most people with meaningful savings to protect but not so much that self-funding is comfortable — is where long-term care insurance tends to make the most financial sense. See whether coverage makes sense for you for a fuller picture, and compare your options with a licensed agent before deciding either way.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.