I am frequently asked “what if I have long term care insurance and never need care?”

Think about that. Think about the purpose of any type of insurance. Yes, with life insurance you know that at some point that policy is going to pay out a death benefit. But I don’t think that there is any other type of insurance where you know that you will get a payout.

That’s not how insurance works and that’s not the purpose of insurance.

Every type of insurance is absolutely the worst money you’ve ever spent. Until…yes, you know that answer. Until the day you need it. Then suddenly it becomes the BEST money you ever spent.
Face it. You don’t expect to collect on your other insurance policies. And you don’t want to.

You don’t expect damage to your car. But you have insurance…just in case.

You don’t want or expect significant damage to your home. But you have insurance. Just in case.

You don’t want or expect to have surgery. But you have health insurance….just in case.

You probably couldn’t sleep at night if you knew that any of these policies had lapsed.

Long term care insurance is exactly the same. No one wants or expects to need care. Some of us will. We don’t know who. So we put insurance in place….just in case.

If we never use it, most of us — and our loved ones — will be glad that care was never needed.

If we do need care, we will be glad our loved ones are not faced with significant financial challenges on top of the physical, emotional, social, vocational, relational, and every other type of challenge that may present itself during a caregiving situation.

I’ve often heard it said that there are two kinds of mistakes that can be made related to insurance. You can have it and not need it OR you can need it and not have it. Which do you think has the more devastating result?