Planning Way Ahead

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As anybody who gets medical insurance at work already knows, November is "open enrollment" month — your once-a-year chance to switch medical plans. It's also a good time to think about adding an important optional benefit: long-term-care insurance to pay for a nursing home, assisted living or home care when you can no longer fend for yourself. (No, Medicare does not cover these costs.) The Federal Government started offering optional long-term-care policies to its employees last year, and a MetLife study released last December found that 37% of private employers surveyed offered them or planned to do so within 18 months.

If you're in your 40s, these policies are a bargain — at least compared with what they cost when you're old enough to need them. If you buy from your employer, the coverage is usually available at a discount (up to 10%), with premiums deducted from your paycheck.

But just because long-term-care insurance is available doesn't mean it's right for you. Any insurance policy is a gamble. Here, you're making a bet that might not pay off for 40 years. Among the factors to consider:

ASSET PROTECTION Long-term-care insurance makes the most sense for people who have a net worth at retirement of somewhere between $100,000 and $2 million and are seeking to preserve their nest egg, says Robert Davis, president of Long-Term Care Quote. With the average cost of a nursing home running about $50,000 a year, $100,000 won't last very long.

FAMILY HEALTH HISTORY A chronic illness or medical condition that runs in your family and heightens your insurance risk could be a reason to buy the insurance now, since many employer-sponsored plans don't require health screenings.

FAMILY SUPPORT Do you live near family or friends who could step in as caregivers? If not, you should probably be planning for your long-term care.

In the end, the decision often comes down to dollars. The younger you are, the less expensive the premiums. And sometimes you can get better deals on the open market than you can at work. Compare rates and carriers online ltcq.net, insure.com), or contact an insurance agent.

Sharon Epperson is CNBC's personal-finance correspondent