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What’s your long term care strategy?

1703 LH 1 Explore long term plans carefully - What’s your long term care strategy?

Living longer is a trend. We’re eating healthier, exercising more, and benefitting from huge improvements in health care. Most will likely live into their 90’s and financial planners are being trained to help clients think about living past 100.

Most folks fail to think that far ahead. Yet studies show that individuals living past 70 will need additional care including home based nursing, assisted living facilities, and possibly nursing homes. In today’s dollars, such expenses can cost up to $7,000 a month.

If you are beginning to think it’s a good idea to start planning, you would be right.

Long-term care (also known as LTC) insurance is the preferred option for individuals that want to be ready for expenses that may come later in life. With a standard LTC policy, the insured pays annual premiums. These can range between $1,000 to $5,000 per year. This provides for financial resources that can be used to address the monthly costs of care in the future.

If one maximizes the benefits of a traditional LTC plan, they can be a great value. However, if the benefits go unused, it can be costly.

Another issue is that in the past, some insurance companies have done a bad job estimating the number of claims they would eventually need to pay. To address this problem, carriers have raised premiums by up to 15% per year. Some insurance companies have given up on offering Long Term Care insurance altogether.

One option to consider is a life insurance policy. With changes in insurance, a life insurance policy can offer you exactly what you need for long-term protection. Your policy can gather cash value, offer a death benefit, offer long-term treatment, as well as terminal health benefits. But should those needs never crop up, it can offer tax-free income once the cash value accumulates fully.

Many folks are surprised to learn how flexible life insurance has become. That’s why it is so important for individuals to talk with their financial advisor to understand their options.

From protecting income to safeguarding your loved ones, there are affordable options that can be tailored to fit your exact needs.

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