How do I determine how much long-term care coverage I need?
Well, the first thing you ask have to ask yourself is, "how much is it going to cost today for long-term care?" The second question is, "How much is it going to cost in the future?" or "How much is it likely to be in the future?" We don't really know what it's going to cost in the future, but in today's world most articles that are written say that you need at least a hundred and fifty dollars a day; forty-five hundred dollars a month, of benefits for long-term care. When I see a client, I don't necessarily recommend that they buy a hundred and fifty dollars a day; I ask the person first of all, "Do you have any income-producing assets that if you needed long-term care, you could draw upon to pay for long-term care?" As people get older, they always say, "Well, I have my social security," but sometimes people say "I have money in the bank" or money in a stock portfolio or "I own apartment buildings." A lot of people say "I have nothing other than my house." Depending on how they answer the question I help guide them through the questions of how much they should have. I tell them that the typical amount, the minimum amount that I think a person should have is a hundred, to a hundred and fifty dollars a day benefit. Sometimes my prospective client will say, "Wow, I don't think that's enough. I think I need two hundred to two hundred and fifty dollars," because they personally know somebody in New York that might be spending nine or ten thousand dollars a month. So, if it's an emotional response like that, I will say, "Well, I'm not going to tell you not to buy two hundred dollars a month, but you should understand that if you have other income-producing assets you could use some of that to defer the costs."
