In his January 14, 2016 column, Forbes contributor Wade Pfau describes what traditional health-based long-term care insurance (LTCi) is. He describes what determines LTCi prices and gives sound advice on when to buy it.
Mr. Pfau has keen insight that enables him to make complicated things easy to understand.
I love that Mr. Pfau hints at what can happen psychologically to affluent families who must self-insure when a LTC event occurs. He describes this in more detail in his December 22, 2015 Forbes column.
I also love the fact that Mr. Pfau is a financial planner. Far too many financial planners, just like the public in general, do not address LTC planning. After all, LTCi is complicated, and planning for it is a highly unpleasant subject for many.
He states, “At some point, wealth may be sufficient to self-fund long-term care expenses, but reasonable individuals may still decide to include insurance in their plans as part of an overall risk management strategy.”
An unforeseen, expensive “spending shock,” caused by an unplanned long-term care event, can wreak unnecessary, avoidable financial, mental, and physical havoc on families and estates.