Long Term Care Insurance Specialist
How will you pay for care?
Care is expensive, and without proper planning, could be devastating to a family’s finances. A lifetime of savings can be wiped out in a few short years when a family member needs care.
If you needed to pay for care tomorrow, what would you do? Besides income, many of us have assets like retirement accounts, real estate investments, and a family home. Which of these would you liquidate first to pay for care? Retirement assets may have penalties or tax consequences when sold. Other assets like investment properties aren’t usually very liquid or available.
Most people don’t want to think about the reality of something happening that would require them to need care. Just like writing wills and health care directives, sometimes it’s easier to ignore the problem than to face the reality head on.
Unfortunately the bury-your-head-in-the-sand method of planning doesn’t usually work out well. Wouldn’t you rather plan for the possibility now while you’re able to make informed choices, then to force your family to make decisions once a crisis occurs?
If you consider a worst case scenario, that a nursing home stay could cost $6,000 to $8,000 per month and try to insure that entire amount, the premiums may be prohibitive. However, knowing that most claims start out with home care, and knowing that you have some resources to supplement the cost of care, a policy covering part of that cost may make more sense and be more affordable.
What I recommend to clients is to evaluate their own financial position and be realistic about what long term care will cost and what they can afford to risk. Usually it makes the most sense to use a combination of personal income and assets plus an affordable long term care policy to minimize the risk.
Long term care insurance is not right for everyone. But where it is appropriate, it can save a family a lot of money and heartache.