Insurance professionals often get "sticker shock" when they see the cost of Long Term Care insurance. Every day I hear things like “that’s so expensive!”, “what can we do to bring the premium down?”, and “my client can’t afford that.” And it’s true, premiums are high and for new policies seem to be ever-increasing.
What advisors don’t typically focus on is the value that the client is getting. When your client tells you they can’t afford a $200/month premium for Long Term Care Insurance, what they’re really saying is they’d rather spend the $200/month elsewhere. What they truly can’t afford is a $10,000/month nursing home bill should they lose the ability to care for themselves down the road and have no insurance.
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The reason why Long Term Care Insurance is “so expensive” is that people need it and use it. 70% of people over age 65 will need long-term care at some point in their lives. The cost of that care is ever-increasing, as modern medicine and technology continue to evolve. The length of time people need long term care is climbing, as life expectancy rises. So yes, it’s expensive, but the value is still there in spades.
The reason why Long Term Care Insurance is “so expensive” is that people need it and use it.
If you want “cheap” insurance, you can probably get great rates on hurricane insurance in Montana or flood insurance at the top of a mountain, but for insurance you’ll actually need - and get a dollar worth of coverage for pennies paid in - Long Term Care Insurance is still a great deal.
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