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Reasons why people don't buy long term care insurance--and why you should.

Taking care of someone means more than just a warm meal sometimes.
Taking care of someone means more than just a warm meal sometimes.
iStock photos

In a recent article I gave some pointers on how to reduce the cost of long term care insurance (LTCi). Click here if you missed it. Agents hear all sorts of reasons as to why people don't want to buy it. "It's too expensive" and "I won't need it" usually lead the pack.

But there are some things that come in to play that don't occur to you until you are faced with it. If a parent needs care and they don't have coverage, who is going to pay for it? More and more, siblings are banding together and buying policies for their parents.Of course, this works best when all siblings are equally reliable; wouldn't work well in my family!

Money makes strange bedfellows and can have a really detrimental effect at the strangest times. There are stories of families being torn apart because one child is overseeing payment of a parent's care expenses and someone starts questioning the legitmacy. Why? Maybe it's eroding into 'the estate.'

What if there is no estate, no savings? Then arguments can ensue over who's going to help pay for an ailing parent. Do you let the parent go on MediCal? That can be a real hot button for a lot of people. These days you hear about the 'sandwich generation' where people are taking care of their parents but their own kids are still living with them and being supported. Long term care can run $75-$90,000 a year. And that's now--what's going to happen in 5, 10, 15 years? To get an idea of cost, check out this information.

And if no one is able to pay for care, and different members of the family start providing care, that can be another very difficult situation because someone always feels like they are doing more than someone else.

So in short, peace in the family might be a very strong reason to figure out how to have coverage either for yourself or for your parents. It can certainly end up being money well spent.


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