How Much LTC Insurance Really Costs


How Much LTC Insurance Really Costs

Yes, long-term care insurance CAN be expensive. My first reaction when someone says this to me is to ask how long they waited to buy it (see previous post). Because, of course, too many people wait until they’re older and have more health considerations for underwriting. Which, of course, ups the price.

This isn’t car insurance or home owner’s insurance. Actually, don’t think of it as insurance at all – think of it as another asset, or income protection. Your client pays a company a set amount of money, and in return they get access to a larger pool of money should they need it. Oh, and that money (when used for long-term care) is income tax free. It’s going to be there for your clients when they need it.

In some cases, the financial return of long-term care insurance is pretty hard to beat. More importantly, the emotional return for your clients and their families is priceless.

Just Ask

Talk to your clients and ask:

  • Are the assets you’ve earmarked for emergencies getting a high rate of return?
  • Does your portfolio have enough liquid assets to be able to withdraw funds quickly?
  • Would you be upset if your portfolio balance was depleted to pay for long-term care?

Some people ask, “What if I never need it?” First of all, then you’re one of the lucky ones. Second, that money doesn’t go to waste – in many cases, it can pass on to your heirs. But, trust me, your children and grandchildren would rather you have a plan for care than a plan to give then an inheritance. The cost of NOT having a plan and having an event is much, much higher than what you would have spent on insurance.

Keep Talking

This isn’t the end of our discussion. Let’s keep talking long-term care.

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