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Why 100,000 People Purchased Long Term Care Insurance in 2015!

by | Jan 26, 2016

Over 100,000 people purchased long term care insurance in 2015.  Seven of the top ten long term care insurance companies had an increase in sales in 2015.  Five of those seven companies had double-digit growth in 2015.  (only 3 of the top LTC insurance companies had a decrease in sales.)

Below are quotes from real people (not insurance agents).  These quotes have been gleaned from social media and consumer forums.  These are real people explaining to other real people why they purchased long term care insurance.

Here’s what they said:

“In terms of wealth, we are in the middle, and I believe the insurance can be of considerable value if needed. I don’t consider the payments wasted if they are never used… Instead, I consider the insurance a gift to my spouse and kids.”

“This is about money, but it is also about family consideration. Those who have had parents and had to struggle to take care of them while trying to take care of their own family and work at their jobs know that maintaining an ailing elderly parent can be a very challenging situation mired with guilt, weariness and financial strain for those who are trying to help. I do not want to put that all on my family. I see this insurance as money well spent to have the coverage if I need it.”

“There is also a selfish aspect of my thinking. If I need care, I don’t want my wife to scrimp (on my care). There should be no reservations about using the insurance coverage, as opposed to spending down assets. I am also not well equipped to provide all the care for my wife, if say, she has a stroke and can’t take care of herself.”

“I have found solace for our decision (to own LTC insurance) by realizing that we have attempted to protect each of us from a potentially financially ruining situation…  I don’t disagree the odds of such an event are low, but this is the type of risk meant for insurance: low probability high impact.”

“We didn’t think the policies would cover the entire cost of care if we end up in a nursing home, but we thought between the policies and our savings, if one of us had to go into a nursing home we would be able to pay without impoverishing the other. The policies were not expensive (we bought them when we were in our early 50s and we’re paying a little over $100 a month each for the coverage) and we feel like we are hedging our bets by having them.”

“It seems to me that one of the more meaningful considerations to keep in mind in regards to LTC insurance is that it assures coverage of some of the most important aspects of quality-of-life during the most dependent and vulnerable period in a person’s adult life.”

“The best reason I have heard for buying LTC insurance is so that your kids don’t have to agonize over whether or not to get you the care you need, which might otherwise cost them their inheritance. Who would want to put that trip on his or her kids?”

“Just like life insurance, LTC insurance is not for the person who is insured – that person will get care no matter what. LTCi protects the family and more importantly, the spouse. Have you ever seen an 85 year old woman trying to take care of an 87 year old man who can’t get himself bathed and dressed? Even if she could care for him, doing this day after day will soon take a toll on her health. Kids can help but usually only for a limited time.”

“My policy will cover approximately two-fifths of the cost of a local good care facility……Now, you might ask what good is a two-fifths benefit; well, my income sources (SS, RMDs, annuity) will just about make up the other three-fifths, and if I need more, then I start dipping into my IRA balances. But our state has a partnership in place whereby I’d be able to retain assets in the amount of the total lifetime benefit if I needed to apply for Medicaid. This is very attractive to me, as I hope to leave at least a small legacy for my children.”

“If you are having a hard time justifying the few thousand a year for the insurance you are in for a big “justifying” moment when you’re asked for the $60,000 to $300,000 annual payments (to the home care agency or nursing home).  Do you have a better plan?”