The question is simple: to self insure or purchase long term care coverage. The answer is found in the math and based on life expectancy. For most Americans, it just makes financial sense to own a long term care insurance policy that creates a pool of benefits for senior later living.
How to explain this to clients? Many of your clients will wonder if they can “self-insure” for a future LTC risk. This comparison of an LTC insurance purchase and the amount they would have to save to self-insure is a big eye opener. Clients need facts in order to make decisions. There is so much unknown about when someone might need care, how long, what type? We can’t see into the future but we can prepare for it. It doesn’t have to be a cover all approach. Tools such as these graphs won’t paint the whole picture and shouldn’t be positioned that way. What the client can expect is to know that LTC insurance options abound, we can’t pick one out of hat. There should be a fact finding segment to help advisors and clients understand what matters most to them about the economic…and emotional elements that come with care planning.
Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.