I Don’t Need Long-Term Care Insurance…Think Again

Long-term care insurance information, form and stethoscope.

Over the last week, I’ve had two clients that had to deal with the massive expense of Long-Term Care. This post will be about the two different experiences they both had.

In both cases, I discussed the need for Long-Term Care insurance with the client.

My own grandfather did spend time and eventually passed away from complications of Alzheimer’s Disease in a nursing home. So I know first had what it’s like for one of your family members to have to face a Long-Term Care stay. It’s tough on the patient and the patient’s family.

Mr. Jones Doesn’t Buy Long-Term Care
My first client we’ll call the Jones’. I started working with the Jones’ back in 1999. In 2001, we discussed Long-Term Care insurance in my office. I get a number of unusual responses on the subject when I bring it up. Especially from men.

In this case, Mr. Jones said, “I’ll shoot myself before I go to one of those places!” Mrs. Jones eventually bought the insurance from a family friend.

As it turns out, a few years ago Mr. Jones gets diagnosed with Parkinson’s and Dementia. With no Long-Term Care insurance for her husband, Mrs. Jones was forced to pay out about $70,000 per year for care. In addition, she also had to page her regular household bills. It only took a few years to take a rather nice portfolio balance they had worked decades to save, reduced to a small sum. Ironically, I sometimes think buying LTC Insurance is like carrying an umbrella. Every time you have one it doesn’t rain.

This past week that client passed away. Giving Mr. Jones peace from his health problems. Mrs. Jones told me that it was also a blessing in disguise, because her money would run out in a few short years.

Mr. and Mrs. Smith Buy Long-Term Care…but not enough
My second client we’ll call the Smith’s. Recently, Mr. Smith has had a stroke that has caused a lot of physical damage. He cannot perform several of the activities of daily living. Those include transferring to and from a bed, using the bathroom, and feeding himself.

I just received a call from Mrs. Smith today. That’s why this article is being written. Mrs. Smith called and said after Medicare quits that her LTC insurance should kick in. The Smith’s only bought $100 per day of coverage. It was all they could afford. The remainder will be out-of-pocket for another $118 per day or $3500 per month. Again, in addition to their regular household expenses.

The almost tragedy of this story is that last summer when their Long-Term Care insurer raised premiums yet again, he almost cancelled the policy. I changed his mind only after begging, and convincing him that now is the age he may need it. I’m not too proud to beg about important stuff.

The moral of these stories is: buy Long-Term Care insurance. Make sure you buy as much as you can possibly afford. The average price of long-term care stay in Lexington, KY is over $60,000 per year. Closer to Cincinnati it’s about $80,000. Don’t think for a minute you’ll be able to self insure. Your spouse will be older too, so don’t think your spouse of family will take care of you. Your spouse may not be able to help you physically transfer to bath or to bed.

Have you considered Long-Term Care insurance?

If not, give me a call today at (859) 225-2596, or email me at david@lexwealth.com. Remember, both of these stories happened this past week.

Names of the clients referenced above have been changed for privacy reasons. Services in no way represent any securities or advisory services/relationships. Long Term Care insurance is provided through David Dedman as an independent insurance agent and not through his affiliation with Cambridge.