Why Do Wealthy People Purchase Long-Term Care Insurance?
We asked many wealthy people why they purchased long-term care
insurance even though they had sufficient assets to pay out-of
pocket.Here are some of their answers:
Answer 1: We have always been planners.
We've taught our children to plan ahead. Even though we could pay for
the cost of care ourselves, we want to leave a legacy that is
consistent with our lifelong philosophy of planning for the future.
Answer 2: All my life, I've used other
people's money to succeed. For example, while some of my colleagues
avoided borrowing to leverage financial opportunities, I've succeeded
by borrowing and then investing that money for the future. I view the
purchase of LTC Insurance with this same philosophy: long-term care is
a high-probability risk, and if I can spend $3,000 per year in exchange
for a potential $70,000 per year in benefits, I view that as leverage.
Answer 3: By Purchasing coverage now, I
lock in a lower premium rate for the rest of my life. Even though I
could self-insure today, that could change in the future. With
insurance, if my investments decline in value, I won't have to worry
about invading principle to pay for long-term care expenses.
Answer 4: We were fortunate to learn
about LTC insurance while we were young and after becoming caregivers
for one of our parents. We were also able to write off the premium on
our corporate tax return. When our CPA analyzed the bottom line
numbers, it made good fiscal sense.
Answer 5: The Care Coordination Benefit
of the policy will help my family find quality caregivers if we have a
claim. This benefit alone is worth the price of the policy.
Return from Why Do the Wealthy Buy LTC Insurance to Affordability of Long-Term Care Insurance
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