Introduction
In today’s Cardinal lesson, we dive into a common objection we’ve faced since the 1980s: “Why not just pay for long-term care yourself?” Over the decades, we’ve encountered this question numerous times, and today, we aim to provide a comprehensive answer by sharing our experiences and insights.
Understanding the Objection: “I’ll Just Pay for It Myself”
Throughout the 80s, 90s, and into the new millennium, as long-term care insurance salespeople, trainers, and managers, we’ve worked tirelessly to convince clients to protect themselves and their families against the risks of needing long-term care. However, a frequent objection we encountered was, “I’ve got enough money, I’ll just pay for it myself.” This mindset, while seemingly logical, overlooks the financial, emotional, and physical burdens associated with self-funding long-term care.
The Reality of Unforeseen Health Issues
Hans Scheil and Tom Griffith share personal stories that highlight the unpredictability of health issues. Tom recalls his own experience in 2018 when, at 25 years old, he faced a severe health crisis. Despite being a healthy, active individual, Tom found himself unable to walk and in need of extensive care. His story emphasizes that no one can predict when they might need long-term care, making insurance a crucial safety net.
The Emotional and Physical Toll on Families
One of the most significant drawbacks of self-funding long-term care is the burden it places on families. Tom describes how his wife had to manage household responsibilities, care for their young child, and assist him with basic daily activities during his illness. This situation is not unique. Many families face immense stress and hardship when a loved one needs long-term care, and the financial strain only adds to the pressure.
Hans Scheil’s Family Experience with Long-Term Care
Hans shares his own family’s experiences with long-term care. Despite his extensive knowledge and career in the industry, convincing his parents to purchase long-term care insurance was a challenge. After his father’s stroke and his mother’s Alzheimer’s diagnosis, the family faced significant caregiving responsibilities. These experiences reinforced the importance of having long-term care insurance to alleviate the burden on families and ensure quality care.
The Financial Implications of Self-Funding
Self-funding long-term care can be financially draining. Many individuals who have the means to pay for care out of pocket are often reluctant to part with their savings. Hans and Tom explain that even wealthy individuals may struggle with the idea of spending large sums on home healthcare workers or assisted living facilities. They also highlight the importance of considering tax implications and the benefits of using long-term care insurance to offset these costs.
The Importance of Care Coordination
Long-term care insurance often includes care coordination services, which can be invaluable. Professional care coordinators can help set up home healthcare, conduct assessments, and create care plans tailored to the individual’s needs. This support ensures that the best possible care is provided, whether at home or in a facility, and can significantly ease the burden on families.
Transferring Risk to Insurance Companies
Hans discusses the concept of risk transfer, emphasizing that many people with substantial wealth still choose to insure their homes, cars, and lives despite having the means to cover potential losses themselves. This same principle applies to long-term care. Transferring the risk to an insurance company can protect assets and provide peace of mind, knowing that quality care will be accessible when needed.
Conclusion
Deciding whether to self-fund long-term care or invest in insurance is a deeply personal and emotional decision. Hans and Tom urge viewers to consider the potential impacts on their families and finances carefully. By sharing their stories and expertise, they hope to provide valuable insights to help individuals make informed choices about long-term care planning.
