#1 – “I’m Too Young to Consider Buying LTC Insurance”
Presently 40% of the people in the U.S. receiving Long Term Care are of working ages between 18-64 and 60% of the folks are 65 and older. Planning to seriously look at this Insurance when reaching age 50 is prudent! The prices are as low as they will ever be and you will lock in rates forever. In addition, the longer you wait, the better chance there is that your health will change, and in turn, rates will rise or if it’s a serious change, you may become ineligible. Because the rates rise considerably when you get older, even if you start paying premiums at age 60 instead of age 50, by the time you reach age 80, the total premiums paid will be more ( than starting at age 50) because the premiums are that much higher. Starting early locks in your health status and, in the end, saves you the most money!
#2 -” I’ll save the annual premium and put it in an Investment Vehicle and “self-insure”
If a couple deposits $3,000 per year in an account, and able get 5% compound interest… after 15 years, they will end up with about $75,000. However, in 15 years one year in a Nursing Home will cost about $170,000…this approach is simply not prudent planning.
If another couple buys Long Term Care Insurance at a cost of $3,000 per year, it will buy them a “Pool of Money” of protection ON DAY ONE of approximately $450,000. In 15 years, this Pool of Money will grow to about $900,000. This large amount of money will provide each of them with several years of Professional Care if and when needed
These examples clearly show that the same annual $3,000 produces two VERY DIFFERENT RESULTS! The first example can result in a family Retirement Nest Egg being destroyed due to unexpected Long term Care costs. In addition, family tension, disappointment and regret, will all follow. The second example shows that with a large Pool of Money available, retirement savings are protected and a tough situation is made a lot easier for all involved! Two different results with the same $3,000 annual expense!