If a person carries a long-term care insurance policy, but never uses it, they aren’t going to get anything back. It’s not like certain life insurance policies where you can cash out after they mature, or they pay out upon your death, so some people may worry it’s a waste of money.
Would you say the same thing about automobile insurance?
Okay, automobile insurance might be a bad example because it’s required by law if you have a registered vehicle on the roads. So, let’s talk about health insurance.
If you pay into a health insurance policy for five years, for example, and then switch companies for something more affordable, are you going to get the money you paid back to the original provider, even though you never needed to visit a doctor, get a checkup, or deal with an illness?
No, you’re not. So, why is there this idea that if you don’t ever need long-term care you should get your money back? That’s not the purpose of insurance.
Insurance is about protecting against the possibility you may need some type of support in the future. When you’re talking about long-term care insurance, the odds you would need long-term care will increase the older you are.
So, for example, if you’re in your late 50’s, you may not have any need of long-term care for the next decade or more. However, starting a policy at this age is the prime target because of affordability. Your monthly premiums will generally be lower if you start a policy in your mid 50’s than it will be if you started in your 60’s.
Also keep in mind if you wait until your 60’s to begin a long-term care insurance policy, you may be denied due to health risks, family history, and other factors.
You never know what tomorrow can bring.
No one can tell the future. Nobody is guaranteed tomorrow. You could be in absolutely perfect health right now, just passed a physical at your doctor with flying colors, and suffer a massive heart attack or stroke tomorrow.
You could be driving home, a diligent driver who is never distracted, never speeds, and follows all safety rules and regulations to a ‘T’ and get involved in an accident that leaves you paralyzed.
Just because you assume you won’t need long-term care doesn’t mean you should take that chance, especially if you have assets, savings, and an investment to protect. It’s a valuable insurance for older Americans.
If you or a loved-one are considering Long-Term Care Insurance Premiums in Del Mar CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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- Financial Planning in Your 50’s Should Consider Having Long-Term Care Insurance - February 10, 2020