1.    “I’m healthy at 65, it won’t happen to me.” The latest statistics from the U.S. Department of Health and Human Services (LongTermCare.gov) indicate individuals turning 65 today has almost a 70% chance of needing long-term care services of some kind. While that leaves 30% that may never need it, 20% of those requiring long-term care will need it for longer than 5 years. Statistics further show that women (3.7 years) need care approximately 1.5 years longer than men (2.2 years).

​2.    “Medicare or my health insurance will cover the cost.”  Wrong, Medicare only covers a maximum of 100 days and only if you require skilled services or rehabilitative care. The average stay actually covered by Medicare is much shorter at only 22 days. After that, you’re on your own.  According to the Genworth Cost of Care Study from 2013, the average cost of LTC for a skilled nursing home in the state of Florida is $7,604 per month. This amount is estimated to be $23,184 per month by 2037! 

3.    “I know a lot of people who paid years into long term care coverage and they never used it.” What about the vast majority of people who did not have long term care coverage and wish they did?  Or, what about those who have it and thankful they did?  Even if you paid into a policy for 10 years and then have a need, the first year coverage alone would typically more than recoup the 10 years of premiums. 

4.    “I’ll wait until I have a problem.” The cost of long-term care insurance continues to rise every year and until you purchase a policy and lock in the premium cost, every year you wait it will go up. 

5.    And the all-time dumbest excuse- “My family will take care of me if something happens.”- Really, do you want your son changing your diaper or your forgetful husband administering all the cocktails of prescriptions you need to take?  Who will lift you into the tub or shower?  Think about it….

Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Please consult with a licensed financial professional when considering your insurance options. Any opinions are those of Thomas Fleishel and not necessarily those of RJFS or Raymond James.