A recent New York Times article titled “Millionaires Who Are Frugal When They Don’t Have to Be” resonated with me. It describes the spending habits of many multi-millionaires and sheds light on why people of high net worth should definitely own long-term care insurance (LTCi).
The article confirms what I have seen over and over again during my 25-year career when very affluent people need long-term care.
From the article: “There were common threads in this group. These were people who had all made the money in their own lifetimes and done that as much by saving, investing and making careful choices about spending as by making large salaries.”
Such people create their own wealth and happiness step by step, painstakingly, responsibly, day-by-day. It’s hard! Money is happiness and security. They do not like spending it. Each dollar still has great meaning, even when you have more than enough money to buy just about anything you want, with no concern.
For many years in my practice, most of the time, people who can well afford to self-insure (pay all of their expenses themselves) for long-term care, choose not to!
I see this over and over again and have testimonials from very affluent clients admitting they would not be availing themselves of home care or assisted living were it not for their LTCi.
I have testimonials from children of affluent clients admitting their lives are much different, they are not bound and shackled into caregiving roles, because their parent owned and collected from their LTCi (check this site’s Testimonials page).
I see personal friends who had the opportunity to buy LTCi but did not when they were able to. I know they have the resources to pay for long-term care, but instead, the healthier spouse and/or kids are their caregivers. This outcome is stressful, regrettable, avoidable and undignified!
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