I have a cautionary tale for you this morning. I have a 70-year-old friend of many years named Howard. He is married to a 70-year-old woman named Lenny. They have been married for decades. Howard had an incredible career as a veterinarian. Lenny had an equally incredible professional career. Through the whole process, they had an excellent financial advisor who truly prepared them for retirement; or so they thought. Their golden years were supposed to be full of happiness, travel, and enjoying hobbies and interests in life.
Instead, disaster struck. Lenny was
diagnosed with Multiple Sclerosis. It escalated into full-scale dementia. Lenny
is now an invalid requiring a home care person with her 24 hours a day seven
days a week. At $350.00 US per day, it is a staggering cost of $127,750 US per
year. Her disability requires massive washing of bed linens. Their water bill
averages $1,000 US every two months or $12,000 per year. (In contrast, Elena
and I have an average water bill of $100 US every two months.) It will go up as
water rationing kicks in. Then there are all the medical expenses. Howard is
stuck in the house all the time except for his daily trip to the swimming pool.
Travel is not possible.
If we coolly step back and consider the
actual probability of a disaster like this hitting one of our families, it is
very low. Despite the low probability, Howard's financial advisor and his
insurance professional never advised him to take a serious look at long-term
disability insurance. Elena and I both have this coverage. Her coverage is
provided free, thanks to her employer. I pay a premium of $125.00 US per month.
This is complex insurance coverage. You
need to look at it with your insurance professional and financial advisor. It
may not work for all of you.
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