Forbes article almost (but not quite) gets it right

Thanks for decent article on long-term care insurance (LTCi), Mr. Gleckman, but one part of your advice makes no sense to me. Why do you always recommend that people with net worth of under $200K do not need to worry about purchasing LTCi? 1) Many of these people have ample income to afford LTCi and 2)you readily admit that Medicaid-paid LTC leaves a lot to be desired as far as choice and quality goes. You admit that Medicaid’s future funding is uncertain. Why wouldn’t people with less net worth want the dignity, options and choices LTCi ownership provides?

Why do you advise that people with net worths of more than $2 million can self-insure? $2 million is not that much money and doesn’t throw off that much income. Even for people with many millions, they already designate their income to support their normal lifestyle. A sudden “hickey” of thousands upon thousands of $$ needed for LTC really cramps their lifestyle and can possibly threaten the welfare of the healthy spouse if equity is eroded paying for LTCi. Also, in these situations there is more money to bicker over and familiy members often quarrel over the quality and quantity of LTC their loved one needs. These type of fights may be largely avoided with LTCi ownership.

I sell lots and lots of LTC insurance to people with net worths under $200K and over $2 million. You do the public a dis-service with this advice.