6 minute read
The Cost of Waiting: A Personal Long-Term Care Story
By Marc Glickman FSA, CLTC, LTCP
Long-term care insurance (LTCi) isn’t just a financial tool—it’s a way to safeguard families from the emotional, physical, and financial toll of caregiving. As an actuary with over a decade of experience designing LTCi products, I’ve long understood the value of planning for long-term care. However, it wasn’t until a personal experience unfolded within my own family that I truly grasped the human cost of delaying these crucial decisions.
It all started with a simple phone call from my relative, Colin, a respected doctor and a family man, who was seeking advice on LTCi. Colin and his wife, Amy, were facing the same question that many families ponder: should they buy long-term care insurance, or could they afford to self-fund the costs? Although Colin was confident in their financial security, years of hesitation had kept them from moving forward with a plan. This phone call would lead us down a path of unexpected events that drove home the importance of timely planning for long-term care.
A Family’s History with Long-Term Care
During our conversation, Colin reminded me of our family’s history with long-term care. My grandparents, whom we lovingly called Bubbe and Zedde, both needed extended care for many years. Zedde, a Holocaust survivor, had suffered severe trauma from his experiences during World War II, which led to mental health struggles later in life. He eventually suffered a stroke that left him physically incapacitated, and the family had to make difficult decisions about his care.
Bubbe also experienced a stroke, and I remember vividly how my mother took on the role of her full-time caregiver. For five years, my mother dedicated herself to caring for Bubbe, putting her own health and well-being aside. The burden was immense, both emotionally and physically. These memories stuck with me, and they were a driving factor in why I pursued a career in long-term care insurance. But for Colin and Amy, those memories were too painful, and the thought of repeating that experience with their own children gave them pause. However, decision and prediction algorithms aren’t yet ready for large-scale use without oversight. Recent lawsuits showcase issues with reliability, leading to common themes and complaints.
Long-term care insurance (LTCi) isn’t just a financial tool—it’s a way to safeguard families from the emotional, physical, and financial toll of caregiving.
Colin made it clear: “We don’t want our kids to suffer the way we did, caring for our parents.” Yet, despite this resolve, they had delayed purchasing LTCi, primarily because their financial advisor had suggested they could self-fund the risk. “He wasn’t sure if LTCi was worth the cost,” Colin admitted, echoing a sentiment I’ve heard from many clients over the years.
The Risks of Self-Funding
As an actuary, I’ve analyzed the self-funding argument extensively. While self-funding may seem like a viable option for affluent families, it’s fraught with risks. Market volatility, taxation, and the uncertainty of when care will be needed all complicate the notion of simply relying on personal savings. I explained to Colin that LTCi isn’t just about covering costs—it’s about leveraging insurance to provide peace of mind and, more importantly, protecting their children from the heavy burden of caregiving.
Colin and Amy had also delayed because of concerns about the cost of LTCi and potential rate increases. I reassured them that today’s LTCi market offers a variety of options, including prepaid plans and guaranteed premiums. There is even traditional lifetime payment plans that are more conservatively priced than in the past. Together, we could build a customized plan that fit their needs without breaking the bank.
Colin agreed to move forward, and over the next few days, we worked together to find the right LTCi product for them. Given their excellent health, I was able to secure a plan with superior longevity protection and excellent value. They were so pleased with the outcome that they even considered increasing their coverage to better prepare for future care costs.
The Unexpected Turn
However, as often happens in life, unexpected events soon intervened. Colin and Amy were traveling and wouldn’t be able to sign the application for another month and a half. I remember cautioning them: “Heaven forbids any health issue should happen before you return—you might not qualify for coverage.” At the time, it felt like a typical sales line, but it wasn’t long before that warning took on a much more personal significance.
Two weeks later, my mother called with a quiver in her voice. “Colin and Amy were at the gym, and Amy suddenly collapsed,” she told me. I was shocked to learn that Amy had suffered a brain aneurysm, a sudden and life-threatening condition. The first thought that crossed my mind was whether she would survive. Then, almost immediately, my mind shifted to the possibility of long-term care. What if Amy needed extended care? Would they still be able to qualify for LTCi? And then, I felt a deep sense of gratitude that I had spoken with them just two weeks prior.
A New Perspective on Planning
Thankfully, Amy survived. She underwent a cutting edge surgical procedure that repaired the aneurysm, and her recovery has been nothing short of miraculous. However, this close call underscored the reality that life’s unpredictable twists and turns can derail even the best-laid plans. Colin and Amy’s situation could have been much worse had they delayed their decision any longer.
This experience reinforced what I’ve always known: waiting to plan for long-term care is risky. For many families, it’s not just about the financial costs—it’s about ensuring that loved ones aren’t left to shoulder the burden of caregiving. Amy’s near-death experience highlighted the urgency of making decisions before it’s too late. While they may not have been able to move forward with their original LTCi Plan A, I was grateful to have a Plan B ready—one that still offers protection and peace of mind.
The Bottom Line: Stories Build Trust
As I reflect on this personal story, I’m reminded of how powerful storytelling can be. It’s one thing to discuss insurance in terms of numbers, benefits, and features, but it’s another to share real-life experiences that demonstrate the importance of planning. Stories like these build trust with clients and help them connect on a deeper level with the products and services we offer.
For Colin and Amy, the story had a happy ending. But not every family is so fortunate. The lesson here is clear: don’t wait. Whether you’re considering LTCi for yourself or advising clients on their options, the best time to plan is now.
Marc Glickman,FSA, CLTC, is CEO and co-founder of BuddyIns, a leading long-term care insurance education, marketing and technology company. Marc is a licensed insurance agent in all 50 states and serves on the Board of Advisors for CLTC. Marc has over 15 years of experience as an actuary including as the chief investment officer and chief sales officer for a major LTC insurance company. Marc earned his degree in economics from Yale University. In 2019, he was named one of the top 20 innovators in the insurance brokerage space.
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