Long Term Care Insurance

What if it was a requirement that you have a long term care conversation with your financial advisor on the same day you get your first colonoscopy? Talk about a double whammy!

Did you know that nearly 40% of people over age 65 will spend some time in a nursing home?

According to The Money Alert, for every 1000 people 5 will have a house fire, 70 will have a car accident, and 450 will need long term care.

According to the Society of Actuaries, the average claim associated with a loss is $3428 for a house fire, $3000 for a car accident, and $50,000 a year for long term care. And according to the Wall St journal, less than 10% of Americans over the age of 65 own long term care insurance.

This is insane. What’s going on here?

We don’t want to deal with getting old, or want to deal with our parents getting old but over time, there is a 50% chance of you having to deal with this in some way or another.

So why would you want to buy a long term care insurance plan?

1) You don’t want to outlive your assets, and you don’t want your kids to spend their money on you. You don’t want to depend on anyone to financially take care of you.

2) You want to leave assets to your children, grandchildren, or charity. Long term care insurance gives you the cash flow to pay for health (custodial) care expenses – which could keep your investment portfolio intact.

I am sure some of you can also talk about the pain of being a caregiver to a family member or friend, and the emotional toll it takes on you.

I have seen my clients take $75,000 a year out of their portfolios to pay for their parents care. Now their own retirement is being sacrificed for the welfare of their parents. This happened while the stock market plunged and my clients’ businesses took a hit. It was a triple whammy.

Everyone doesn’t need long term care insurance. But talk about it with your financial advisor and insurance agent. They can advise you on all of the details, including how old you should be when you buy it.

You never know what the future holds but its best to be proactive and plan rather than be surprised.

This article is for informational purposes only and should not be construed as individualized investment advice.