by KYW's Salil Gutt

Consumers are starting to fret over the costs of long term care insurance policies and the apprehension as to whether the policies are worth the high premiums. Must you absolutely have a long term care policy? Here are some guidelines in helping you decide.

The average age when people trigger a long term care policy is in their late 70's and the average payout period is about two and half years. $300,000 of total benefits per person is what the typical policy covers.

In order to trigger the policy, one must have a condition that will last for 90 days. Outside of stroke, fragility of age and Alzheimer’s very few conditions meet this criteria.  

Consumer advocates recommend people with assets between $500,000 and $2 million buy these policies but they should not spend more than 10% of their retirement income on the policies.  I recommend clients buy these policies only when they start collecting a social security check. Even then many resist, preferring to use home equity to cover long term care needs.