What if a client wants to self insure for long term care?
• The majority of the time when a client says they want to self insure, what theyre really saying is, Im so invincible Ill never need long term care or LTCI. From a purely logical stand point: your client owns fire insurance on their home and they carry collision insurance on their car. Why dont they self insure these exposures? Because the risk is too high, and the costs associated with self-insurance would break them. The same rings true when talking about LTCI. For those clients who truly want to self insure because they dont understand the value of long term care insurance, there are ways to show them how to transfer the risk to the insurance company through LTCI for less than 1 cent on the dollar per year.
