Long-Term Care Protection
An Important Part of Investment Planning
The most pressing financial concerns of many people tend to revolve around providing for their families, assuring adequate retirement income and preserving their estates for the future. However, few people consider what would happen to their families, themselves and the assets they have worked so hard to accumulate over the years if they were to require long-term care due to a prolonged illness or disability.
Fortunately, there is a solution to assist in paying for these expenses and leaving more of an individual’s estate intact – long-term care insurance. Without long-term care protection, expenses associated with assisting in the activities of daily living can drain – and sometimes even deplete – a person’s entire estate, potentially putting family members into debt.
Planning for Quality Care and Independence: What you need to plan for long-term care assistance, and what funding options are available.
Selecting a Policy
A long-term care policy should be adequate to cover the potential need, considering the daily amount and how long benefits may need to be paid.
As with any type of insurance, the purpose of long-term care protection is to safeguard individuals and their assets against catastrophe. Therefore, while the average length of a stay in a nursing home is only almost two-and-a-half years, when we consider only those nursing home stays that are for chronic conditions – those lasting more than one year – then the average length of the stay is more than six years. That makes a policy with unlimited, lifetime benefits the most desirable.
The policy should also provide protection against inflation. Individuals should think about those benefits that might need to be available in 10, 20 or even 30 years. Perhaps just as important, it is critical to contemplate what the costs could be at that time compared to the costs today.
Give yourself one less thing to worry about by taking steps now to protect your hard-earned assets and your independence in the future.
For more information about making long-term care insurance part of your comprehensive investment plan, consult your financial advisor.
These policies have exclusions and/or limitations. Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. Please consult with your financial professional when considering insurance options.