How You Can Afford A LTC Insurance Policy
Does it make sense to use (often less than) 1% of your assets to protect the other 99%?
If you do not have long term care insurance today you are self-insuring today.
Can you really afford to self-insure?
Self-insuring means that if you needed care tomorrow, or next week or next month or next year, you will pay out of your savings.
Most people buy a long term care insurance policy to protect their nest egg/retirement money so they can have a good retirement and/or leave something for their children.
Some financial planners will give clients a choice: either buy long term care insurance to protect their assets or set aside $200,000 (each) for long term care expenses. Even if the risk is small, the consequences are big. Are you willing to risk the consequences?
A common way to look at funding long term care insurance is to use some of the return on the principal of your investments.
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CHOOSING A PLAN
Your choices today are:
-Self-insure for long term care (pay out of pocket)
-Buy a long term care insurance policy
-Rely on government assistance (Medicaid welfare health care)
If your health changes before you have a policy you will have two choices:
-Self-insure for long term care
-Rely on government assistance (Medicaid welfare health care)
If your money runs out you may be left with one choice:
-Rely on government assistance (Medicaid welfare health care)
The main question to answer is: Will you ever need long term care?
No one knows, you will either die without needing it or you will need it.
This unknown creates a risk that you can protect yourself from with insurance.
Do you want to continue to carry the risk or transfer it like you have done with your health, car and home insurance?
If you think you are putting of deciding, you’re not, you are still deciding.
If you want to find out how much it will cost you for long term care insurance then get a quote.
If you want to transfer the risk from your family to an insurance company then get a policy.
Also see
LTC Charts
