Should You Buy Long-Term Care Insurance?

January 16, 2020

The Principle:

We all need to be prepared for the possibility of long-term care. But when it comes to buying long-term care insurance it’s hard not to get sticker shock. Should you consider it as a part of your financial plan?

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

If long-term care insurance is outrageously expensive, what do you do? Do you pay the high premiums or do you take the risk and go without?

It isn’t an easy decision to make, but sometimes you have to consider your source of information. If you go to a long-term care insurance specialist, they will sell you long-term care insurance. But what about with a financial advisor, what will they tell you?

You have to look at your assets and guaranteed sources of income (such as pensions or social security). Look at the math and see if it adds up. If you were to invest it over time, will you be able to make more in an investment account? Long-term care insurance offers protection, but is it something you should have for thirty years? How much money could you otherwise invest?

Deciding to buy long-term care insurance is not about the right or wrong answer. It’s a matter of looking at your situation to determine what will be most beneficial. Have a comprehensive retirement plan, which includes how to pay for long-term care if needed.

Listen to the full episode or click the timestamps below to hear a specific segment.

[0:18] – The premiums of long-term care is pricing half of baby boomers out of the market.

[1:50] – Do you need long-term care insurance?

[2:39] – Look at the math on long-term care insurance.

[4:57] – If something happens, how will you pay for both you and your spouse?

[6:28] – Consider the opportunity cost of long-term care insurance.


Today’s Truth:


The Host:

Brian Bowen – Contact