People who do not buy long term care insurance must be psychic because they act with the certainty of knowing in the future “it won’t happen to them.”
What do you want your lifestyle be like when you are elderly and need care?
Are you deciding the fate of your estate based on facts or wishfull thinking?
When asked where do they want their “estate” assets to go to people almost always say to their heirs. But the reality they are ignoring is that 90% of estates will be spent in this order*:
1. Nursing home
Even in light of the above probability for their estate plus the fact that the US DHHS (Medicare/Medicaid) statistics show that 70% of us will need long term care, and insurance claims show that 72% of women will need care, people are still clinging to the idea that they do not need insurance. Have you ever seen the bumper sticker “We’re spending our kid’s inheritence”?
Disappearing Inheritence: … leaving a legacy will become even harder for those who will need long term care under new tightened Medicaid eligibility rules.
Wives may suffer when husbands refuse to buy long term care insurance. Just as purchasing life insurance at the birth of a child demonstrates love of a spouse, the purchase of long term care insurance continues a legacy of financially taking care of a spouse for better or worse.
*financial advisor Jonathan Pond.