Long term care … who needs it!

Why waste hard earned money on something as elusive and unimaginable as long term care insurance? I mean, what exactly does it cover and why would you pay for something you may or may not need?

In her recent post, financial planner Gelasia Steed gives a sobering account of what most of us don’t want to think about … And, yet most of us will likely experience a similar situation at some point in time.

In the end it all boils down to the key definition of insurance; managing the risk of a future occurrence of an uncertain event.
In other words, don’t look at long term care insurance as different from for example home owner insurance or car insurance. All are created to transfer the risk of significant adversary events, whether it be future personal care, hazards to a home, or the property and well-being of fellow drivers.

Usually people are able to grasp the magnitude and risk of losing a home to a fire and thus the need for home owner insurance (hazard insurance). But to grasp the scope and significance of an event that may lead to the need for personal care is much harder. In fact, people tend to think they’ll die before they’ll need home care or long term medical assistance.  It is much easier to convince someone about the need for term life insurance than it is to convince someone about the need for long term care insurance (at least in my experience).

I wonder if long-term care insurance is too much of a reality-check for people? After all, it does confront the issue of dependency and vulnerability.  Whatever the reason, read Gelasia’s post … it’ll make you think!