Why LTC

Not sure why Long Term Care Insurance (LTCi) is a good idea?  The following lists most of the reasons people use for failing to purchase LTCi:

I’ll self-insure
I’ll self-insure (2)
The government pays for care
I’ll wait
I won’t need care/LTCi is a rip-off
My kids will take care of me
I don’t need an insurance agent; I’ll do it myself
LTCi Is Expensive

I’ll self-insure

If you really mean this, the only smart way to accomplish this is to have separate long-term care savings.  If you don’t do this, and do wind up needing care, your life savings may have to be drawn upon to pay care costs. Self-insuring may cause you to spend money you intend to live on in retirement, or leave a legacy with. It may also result in less freedom/fewer care choices and unnecessary stress for your spouse and family.  According to the June 2008 John Hancock Cost of Care Survey done by CareScout, in the Dallas/Ft. Worth area, the annual cost of private assisted living is $41,484.   Back to top

I’ll self-insure (2)

You will have to save very aggressively to accumulate what LTCi will generate.  Call me and I’ll walk you through the arithmetic to prove this, using all of your own numbers and assumptions.  Back to top

The government pays for care

The government doesn’t pay for the broad range of care options many people want.   Back to top

I’ll wait

If you plan on living a long life, waiting to buy LTCi will not save you money. In addition, if your health declines, LTCi may cost a great deal more, or you may not qualify for it at all.    Back to top

I won’t need care/LTCi is a rip-off

If you believe this, you’re at odds with every nationally recognized financial expert I know of.  If you’re middle class, even our federal government and Dear Abby advise purchase of LTCi.  The odds are high that you may eventually need care, and care costs can be catastrophic.  Back to top

My kids will take care of me

You don’t believe this, do you?   Do you want to burden them?  Back to top

I don’t need an insurance agent; I’ll do it myself

Then why haven’t you done this yet?  LTCi is has a few too many moving parts for the typical person to tackle alone.  There’s so much to it that often people feel overwhelmed by the task, so nothing gets done.   Some people do buy LTCi on their own, but never quite develop a full sense of confidence in their decision.  If you’re going to spend the money that LTCi costs, you should be absolutely confident about what you’re doing.  You should have a plan you understand well, that does exactly what you want it to do, and fits into your budget.  In the same amount (or less) time that it would take for you to try to plod through your LTCi decision on your own, you could have a more pleasant and less stressful experience working with me.  National media and national experts recommend that you work with an LTCi specialist.  My clients agree.  Back to top

LTCi Is Expensive

It doesn’t have to be.  Rates vary depending on your age, marital status, health, and what features you choose.  The big picture is that if you need care, it generally takes just a few months or less, to collect the entire premium you paid in.  Back to top

The information above strictly reflects my personal opinions. Always feel welcome to call me at 713-988-4671, or contact me to talk about any of this.