Your Risk Tolerance Philosophy and Long-Term Care Insurance

Some people have a high tolerance for financial risk, while others believe in a more conservative approach and would prefer to transfer a risk to an insurance company.

To understand your own risk tolerance philosophy, ask yourself the following 2 questions:

1. Have I consistently insured my family and myself for the proper types and amounts of insurance coverage, such as health, disability, and life insurance?

2. If I have, do I tend to transfer the entire risk to the insurance company, or am I comfortable insuring some of the risk myself? In other words, should I consider co-insuring the long-term care risk?

The answer to question #1 will help you to decide whether or not LTC insurance is an option you should consider.

The answer to question #2 will help you to choose the appropriate benefit options if you do decide to purchase LTC insurance.