To Buy or not to Buy Insurance?
Who should buy insurance?
If you have a spouse and can afford to pay the premiums either from income or savings until you may need care. Buy it! I know the premiums are high,Your insurance poor,I won't need it.My Medicare policy covers it (no) I Hear it all the time Eventually someone becomes ill or gets older and suddenly realizes I do need it. This is the biggest thing that wipes out estates. Nothing is worse than having a spouse wiped out because their partner spent their life savings on Nursing Care.
If you are single and want to leave an estate you also should have coverage. Most states spend an individual down to $2000 and use estate recovery on any property you may own.
Who should not buy insurance?
If you have limited assets and low income and will not be able to pay the premium until you need it. Don't buy it!
What is limited assets? I usually suggest clients have at least $70,000 in savings and $1000 dollars of extra income a month in order to buy coverage .Under that amount medicaid planning is more useful
Self Insurance:
If you have a million dollar estate you probably can pay long term care expenses. Why buy insurance? For the same reason you have car, medical and homeowners insurance. If you have no car insurance or property insurance then you probably are wealthy enough to self insure. The risk for long term care is 1 in 4 at age 65. 1 in 2 at age 85
