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Originally Posted by The_Jazz
You need to be clearer in what you mean - there are insurance products out there (besides typical health insurance) to pay for long term healthcare. Proceeds off of life insurance can be used to pay for ANYTHING since you get cash and as such should be counted for net worth provided it's not term life insurance.
With this "clarification" your first post looks clear as mud.  |
I'm sorry that you are having difficulty with this concept. Some life insurance only pays out if you die. Period. The money is not available to anyone unless you die. This life insurance cannot be used to pay for medical expenses (unless used, after the person dies, to settle the bill with the hospital). It should therefore not be counted as part of your net worth, because YOU aren't worth that. Your estate WILL be worth that, AFTER you die. You cannot count potential net worth as net worth - otherwise I'm a potential millionaire, why can't I get that Ferrari on credit?
Other life insurance policies do, as you noted, allow you to borrow against them at 0% interest so that you can get hold of cash. Those policies can be used to pay for healthcare, here, now, while you're still alive. That, then, is part of your net worth.
Long term healthcare policies are obviously there to be used to pay for health care, and so do not fit my initial argument, which regarded life insurance policies that pay out only at the time of death.