Too Early For Long-Term Care Insurance

Nancy and her husband have been advised to look into long-term care insurance. They're both 40. Dave disagrees with this idea and tells Nancy why.

QUESTION: Nancy in Minnesota and her husband have been advised to look into long-term care insurance. They’re both 40. Dave disagrees with this idea and tells Nancy why.

ANSWER: I disagree. The percentage of people under 60 who spend time in a nursing home is less than 1%. It’s stupid to buy insurance for that. This guy must sell insurance. That scares the crap out of me for everything else he’s telling you to do. The only people who recommend you buy long-term care insurance under 60 are long-term care insurance salesmen. No one else does. The likelihood of you spending time in a nursing home is low. If you buy it 20 years earlier, that’s not cheaper! Add up 20 years of premiums and figure that against any cost savings you would get plus the present value of that money. Invest that 20 years’ worth of long-term care premiums and you can buy a freaking nursing home. No, and honestly, that makes me question anything else he’s mentioning, too, that he sells.