What would happen if you were to find out that you had cancer six months from now and you didn’t have any health insurance coverage? Let’s imagine for a moment that you went to your doctor for you annual checkup feeling great, and she tells you that have cancer. It’s expensive but definitely treatable. The cost for the entire course of treatment is $375,000, since you don’t have a health insurance policy. Would you be able to write that check without batting an eye? Would you be able to comfortably work out a repayment schedule with the hospital and assume the payments of what would be essentially an additional monthly mortgage payment? If the answer to either of those questions is no, then you need a comprehensive health insurance policy, don’t you think?
What would happen to your spouse and children if you were to have a car accident six months from now and die instantly without any life insurance coverage? Let’s imagine for a moment that your spouse is able to get or keep his/her job and find arrangements for the care of the children while working full-time. Would your spouse easily be able to afford the mortgage payment? What about paying the auto loans? What about paying school loans? What about paying for the kid’s college? If the answer those questions is no, then you need a life insurance policy, don’t you think?
What would happen to both your budget and your family members’ budgets if you were to choose to go without long-term care insurance, but years from now you end up needing long-term care at a cost of $50,000+ per year? Imagine for a moment that you are in a situation where you absolutely have to have the specialized care, but you only have the funds available for a few months of payments without decimating your retirement funds. Your health has to come first—what would you do? If your budget wouldn’t be able to handle the cost, and you couldn’t bear to have a family member pay for you (if they were even able), then you need a long-term care insurance policy, don’t you think?
Joel Ohman is a Certified Financial Planner and founder of CarInsuranceComparison.com and owns a life and health insurance agency based in Tampa, Fla.