Long-Term Care Insurance Makes Sense

Don's wife had a stroke at 35 years old. He purchased long-term care insurance at a low rate through his employer. Should he continue to pay for it at twice the rate or drop it altogether?

QUESTION: Don in Detroit has a wife who had a stroke at 35 years old. He purchased long-term care insurance when it was offered to him at a low rate through his employer. Now the insurance has been transferred to an independent company. Should he continue to pay for it at twice the rate or drop it altogether?

ANSWER: Yes, I would buy it. Your logic is sound and you have the money. It’s not a big percentage of your world. Sixteen hundred bucks a year with a 47-year-old stroke victim out of $110,000 makes all kinds of sense.

You don’t need it. You’re the norm. I strongly recommend long-term care insurance. Everyone should get long-term care insurance once they’re 60. You have less than a 1% chance of using nursing home insurance prior to age 60, though, so I don’t recommend buying it until then.

Your situation would be an exception because you’ve logically, carefully analyzed this and done a good job of figuring it out. Yes, I would buy it.

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