What About Long Term Care Protection

Now  may be a great time to get Long Term Care  (LTC) coverage.  Most investors are now aware that their assets are subject to the whims of the market and are exposed to Massive Downside Market Risk. Not everyone is exposed but most people are.  My retirement clients are protected from downside market risk.

Why is this a good time to think about LTC coverage?  With the 30-50% drop in many investors net assets they now need to be concerned about the major risk of trying to  self fund their  LTC Needs. Investors who a year ago felt they  could easily afford the  risk and expense now find themselves in the uncomfortable position of having a legitimate concern about their ability to Pay. Remember it is essential to fund both their comfortable  retirement and the potential for a multi-million dollar  Long Term Care expense. Historically  when faced with a decision to  buy  LTC insurance those who are wealthy enough to truly be able to self  fund are generally smart enough to realize why the hell should they  self  fund  when  they  can  transfer the risk of the  LTC expense to an insurance carrier for a fraction of the  cost of funding a self pay program. They are the  early adopters of LTC  coverage. Niow for those in the middle that don’t fully understand the risk and are not aware of the unbelievable cost of  LTC need to rethink their ability or even the logic of  self  funding.

Two facts are  certain. Approximately half of the population will have a LTC need during their lifetime!  The cost of care for a couple in their 50’s or 60’s can  easily reach $1 Million or more!  Why not  pass the risk on to an insurance  carrier?  In fact a smart couple in their 40-50’s can  have a policy that is fully paid for by the time they  will retire that could provide an inflation adjustedlifetime of care protection package! In fact if you  start early it can  even be done at  reasonable cost.  Thats pretty smart planning!

Tags: Finance, Long Term Care, LTC, Money, Reverse Mortgage