Is Long Term Care Insurance or Investing My Money the Best Decision?

A chemical engineer, an electrical engineer, and a Microsoft engineer are on a road trip. The car breaks down.

The electrical engineer looks under the hood and can’t find anything wrong.

The chemical engineer checks the oil and fuel and can’t find anything wrong.

The Microsoft engineer says, “Close all the windows, and try again.”


Where’s the best place to invest?

The husband of a couple who came to talk to us said, “I can take the money I’d pay for Long-term Care Insurance premiums and invest it and I’ll be way ahead.”

“That’s magical thinking for all but the very wealthy,” says a Ladies Home Journal article. They looked at a 52 year-old male investing his long-term care insurance premiums annually over 10, 20 and 30 years. Even with a 6% annual return, the investment  yielded less than 30% of what is actually needed for skilled long-term care today.

Richard Eisenberg, Forbes Contributor writes: “The average American underestimates the cost of in-home long-term care by almost 50%. Home health care happens to be the most popular long-term care option — compared to institutional nursing homes and assisted living facilities.”

Financial advisers who refer their clients to us lack confidence in a consistent 6% return. They also cite liquidity, market conditions, taxes, lost investment opportunity, legacy issues, the years needed to grow the funds needed and the “Death Spiral”, (liquidating assets that have been allocated to generate income), as reasons they do not advise self-funding long-term care. For more details, visit this page.

Terry Savage, nationally known expert on personal finance and blogger for The Huffington Post writes: “…consider one of the new ‘combined’ policies that offer both long-term care benefits and a death benefit (or cash value withdrawal) if you don’t use the care benefit.”

Check out our “15 for Life” policy. You’ll see what Terry is talking about.

Then call us 847. 362.8888. Contact Rebecca Bloomfield, partner at Jerry S. Pearlstein Insurance holds a national Certificate in Long Term Care. She and Jerry will put together a plan that is the best investment in you.