People Look at Long-Term Care Insurance as an Investment

By Steve Elliott | July 11, 2023 | Comments Off on People Look at Long-Term Care Insurance as an Investment

Now, we’re not talking about financial investments per se, but rather long-term care insurance. When people hear the term ‘insurance,’ they don’t think about investments. They think of liabilities or expenses. However, if you look at long-term care insurance a little bit differently, you may realize that it is, in some way, an investment for your future. Speaking with long-term care insurance companies can you a better understanding of this.

We hear the word thrown around an awful lot these days. Most of the time it involves financial investments, most commonly in the stock market. Too many people have become fully reliant on their employer to sign up for a 401(k) plan, and have no idea who is running it, who is making decisions, or how things are going other than a basic percentage point for their portfolio.

Yet, investments — wise investments, that is — can be tremendously valuable for people over time. For example, if you invest $1,000 in compounding interest accounts, you could end up with $22,000 in 20 years.

Are you going to get all that money back in the end from a long-term care insurance policy?

It’s not like some life insurance policies that you may be able to cash out before you reach the end of your life. Of course, with those policies, you are not going to be getting back what you put in, but rather a percentage of the money you already spent on that policy.

With a long-term care insurance policy, you won’t be able to get any money back, even right up until the end of the policy expiration date. What you do get, though, is protection against the rising cost of various forms of elder care.

What is elder care?

That involves a wide range of support services, including assisted living, nursing home care, in-home care, and other independent living options. For the most part, people would want to remain home, known as aging in place. That is the preferred option, but it’s not always practical, depending on health and other factors.

Too many people dismiss the entire notion of what they may need during their elder years. They assume they won’t ever require long-term care. Most of us understand we are mortal and one day we will pass away, but having to deal with long-term care?

That’s not something people want to think about, not in their 30s or 40s or 50s. In fact, people often don’t think about long-term care even well into their 60s. Even when an aging parent or grandparent had gone through something similar in their golden years of life.

Yet, the cost of long-term care can be hundreds of thousands of dollars per year. What if you have to tap into your investments, your 401(k), or your savings accounts to pay for that, even for just two years? You may just find out that the penalties for tapping into those investments early are huge and that long-term care insurance really would’ve been an investment in your future.

A good investment is one that protects what you had spent your life working and earning and saving for.

If you or a loved one are considering Long-Term Care Insurance Companies in Rancho Penasquitos CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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