A few years ago, I shared a similar observation. I did a Google search on “why should I buy LTC insurance”. Once I got past all of the company ads for LTC, I came across a bunch of opinion pieces that were generally “pro-LTC” planning and using insurance as a funding vehicle,
One of the websites that came upon was a landing page of a LTC specialist with an interesting approach. I think it is worthy of sharing with you.
First was a statement of defining a few things that we value. I am going to paraphrase:
- We love our family
- We believe that we do not want to be a burden on family and friends
- We want to fulfill our commitments and plans now and in the future
- And, you are financially successful and have sufficient resources to pay for your lifestyle in retirement.
Here is a point that I think is often overlooked for one reason or another. Maybe it is ego, maybe it is not believing the power of insurance, maybe it is ignorance. Regardless, here is the point that I think is worthy of consideration.
There is no “safe return on investment” available … that can return what an insurance company and the tax code can provide to you.
Reinforcing that statement is a little challenge (which I love):
Call your wealth advisor and ask them to:
- Waive their management fee,
- Guarantee a return on your investments of (pick the amount) every month with no risk to your money
- And, make that money not impact your taxes or other benefits.
It is highly unlikely that they can execute this request. Of course, someone with significant assets (several million) might be able to accomplish this, but that is a rarity.
Why do I share this?
Simply – thinking that you can self-fund is risky. You only win if a long term care event either does not occur or it is short in duration. And, given the market challenges that we are facing today, is that strategy where an investment strategy that outperforms an insurance policy a reality (even for a moderate duration event)?
Consider these points, look into your block of business, and ask yourself which clients lifestyle, relationships, and finances would be irreparably impacted by a long term care event.
As always, if you want more information or assistance with Care Solutions, contact Justin Fox at (844) 658-3725 or justinfox.isp@oneamerica.com, or Nick Angelov at (844) 623-4251 or nick.angelov.isp@oneamerica.com, or myself at (678) 512-9627 or kevin.fisher@oneamerica.com
Fridays with Fisher 