Investing In Something I Hope I Never Use

Just recently, my wife and I bought Long Term Care Insurance.  We're in our late '40s, healthy, and far from retirement. So why spend over $2000/year on something that we may not use for years to come, or never?

Quite frankly, working in the home care industry has opened our eyes...we've seen people ranging in age from 46 to 99 years old find themselves in situations that suddenly required around the clock care for anywhere from a few months to the rest of their lives.  According to a recent MetLife survey the cost of this type of care in San Diego County averages about $19 per hour.  That's about $450/day, and over $13,000 per month.  

It was easy for us to see that, if needed, long term care insurance can pay for itself pretty quickly.  And the odds are pretty good that it will be needed.  Plus, the odds increase the older you get.  According to the Health Insurance Association of America, 1 in 5 will need long term care by age 50, 4 in 10 by age 65, and 7 in 10 by age 75. 

These days, I talk about long term care insurance with just about everyone I know and nearly every customer I meet -- and I don't even sell it...I just hate seeing people stuck in difficult situations without options.  For many of us, long term care insurance, if a serious illness or injury occurs, can mean the difference between an extended stay in a nursing home or the option of recovering in our own home.  I'd rather have that choice.