Although Americans appear to be sound financially (the richest nation in the world), we are in serious financial trouble individually. According to some estimates, 78% of full-time working adults in the United States are living paycheck to paycheck (CNBC), and the average household debt is well over $200,000. And those numbers are just getting worse. In fact, the percentage of full-time working adults who are living paycheck to paycheck increased from 75% to 78% in just one year.
Financial planning is certainly a responsible thing to take part in, but how does that work when people are digging themselves deeper and deeper into debt because their spending is out of control?
This article is not about conviction or judgment, but rather pointing out that when people become more responsible financially, it usually occurs as they get older and retirement age is fast approaching. When that happens, they look at their 401(k) investments, consider other options, and want to protect themselves and their family as much as they can for the future that looms ahead.
A solid financial plan should include long-term care insurance.
That’s not to say a person in their 30’s or even their early 40’s should consider a long-term care insurance policy. At that age, a more prudent option would be to take whatever money you may consider investing in long-term care insurance and instead put it into bonds, CD’s, or other solid, safe investments monthly.
However, a person in their 50’s should seriously consider long-term care insurance. Why? Their health will begin to decline, even if they work out, eat right, and take good care of themselves physically. The natural process of aging does not discriminate. It strikes everyone eventually.
As people get older the risk of health issues, injuries from slip and fall accidents, and other situations increase. The older a person is, the greater the risk. At some point in time an aging senior or person approaching their retirement years may no longer be eligible to get a long-term care insurance policy because of health risks and other factors, including family history.
Also, the older people are, the more expensive a long-term care insurance policy will be as a monthly premium. Yet, the cost of not considering long-term care insurance can be far greater.
In fact, a person who needs full-time care for three years, such as in a nursing home, could find themselves paying well over $300,000, which might very well be more than the average American can even muster up from their retirement portfolio or their home mortgage.
If you or a loved-one are considering a Long-Term Care Insurance in San Diego 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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- How Ignoring Long-Term Insurance May Affect You in the Future - September 8, 2020