Long Term Care Insurance Specialist
"We Have Plenty of Assets to Pay for Our Care"
Many people are of the belief that if they have significant assets, then they don’t need insurance. If that were true, then they wouldn’t need homeowner’s insurance or medical insurance either. If they could afford to rebuild their home in the unlikely event that it was destroyed in a fire, then why should they pay for insurance?
Of course they insure their home, because it is a significant asset that is at risk. Even though there’s a one in 1200 chance that their home will burn to the ground, it’s not worth taking the risk when an investment worth hundreds of thousands of dollars is at stake.
So why are people of wealth reluctant to insure their retirement investments against the risk of needing care, when that risk is so much greater? One in three men, or one in two women will need care at some point. That is a 50% chance that hundreds of thousands of dollars worth of investments could be spent paying for care.
Besides, when self-insuring (the checkbook method of insurance), every dollar spent on care costs a dollar. If an individual spends $72,000 in a year to pay for care, that money comes directly out of pocket. If the insurance company pays that $72,000 for the person’s care, it was paid for with pennies on the dollar.