I’ve just returned from my third long-term care insurance (LTCi) conference of the year, where I again was told that sales of new LTCi policies were down 26.5% in 2013 in terms of premiums and 22.9% in terms of number of policies. That’s the bad news.
The good news is that we have many excellent products to help people prepare for the high risk and cost of needing long-term care. Some are new and some are traditional LTCi products. The newer products are non-traditional life insurance and annuity policies specifically designed to protect for LTC. These products greatly leverage premiums paid in if long-term care is needed. These new products are good; the bugs are out. They work.
LTCi premiums can be made reasonable and affordable. What may not be reasonable is needing LTC for anything but a short period of time and not owning LTCi.
If you are middle class-to-affluent, it is irrational to put off responsible LTC planning.
Sadly, most people remain irrational about the need for responsible LTC planning. There is something about the human psyche that dislikes having conversations about unpleasant, yet probable events in the future. I meet many people who can afford to own LTCi, yet instead they spend the cost of LTCi premium on “toys.” Such people are often financially and emotionally unprepared when the need for LTC arises. Sadly, such circumstances will increase as time passes.
This past year, the media has been more helpful than ever when it comes to broadcasting why the government can’t and won’t pay for LTC, as well as how important it is for Americans to plan for LTC on their own, in advance.
Despite this, Americans still refuse to acknowledge this grim, true advice.
Medicaid, a government funded program, pays for the majority of LTC in the US. Click on this link to see my blogs on why Medicaid-funded LTC is not the type of care people who own LTCi would choose.
Please share this information with people you care about. Do not be discouraged when they make up excuses to avoid LTC planning; instead, I hope you’ll keep trying to influence them. The time to plan and be prepared for LTC is now.