Alzheimer's Family History Raises Long-Term-Care Insurance Question

A reader in their 50s is confronting a question familiar to many Americans with a family history of dementia: Is long-term-care insurance a financial necessity, or an expensive gamble? The reader's mother died from Alzheimer's disease, and by the time she passed, her insurer had paid out nearly $600,000 in benefits — a figure that underscores just how costly extended cognitive decline can be.

The case illustrates the core tension in long-term-care planning. Premiums can be steep, and many policyholders pay in for decades without ever drawing significant benefits. Yet for families with a documented history of Alzheimer's or other degenerative conditions, the actuarial math can shift considerably, making coverage a more defensible financial decision.

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Experts generally advise that people in their 50s are at an optimal window for purchasing long-term-care policies, before premiums climb sharply with age or health changes make applicants uninsurable. Waiting too long can foreclose options entirely, while buying too early means years of premium payments before coverage is likely needed.

Family medical history is one of the most consequential variables in this calculus. Alzheimer's disease has known hereditary components, and a first-degree relative who suffered from the condition can meaningfully elevate an individual's statistical risk. That elevated risk, financial planners note, is precisely the scenario long-term-care insurance was designed to address, even as the private market for such policies has contracted in recent years due to insurer losses.

Anyone weighing this decision should evaluate their liquid assets, existing retirement income, and tolerance for financial risk alongside their health history before committing to a policy. Continue reading at MarketWatch.com