Empower Peace of Mind
During our working years, we look excitedly ahead toward retirement. Dreams become plans that are built and reworked in order to move us toward the day we change gears, from working on it to enjoying it. On that day, you become financially dependent upon the strength of the ‘nest egg’ you’ve carefully constructed, and the assumptions which are the branch it rests upon.
Disability Insurance protected your income during your working years, but what protects your nest egg during retirement?
Experiencing a Long Term Care event is the most common financial disruptor during retirement. According to the US Department of Health and Human Services, nearly 70% of Americans turning 65 today WILL NEED Long Term Care services during their lifetime. Long Term Care services can be medical or non-medical services provided to those with a chronic condition who need assistance with the Activities of Daily Living (ADL) such as dressing, bathing, transferring. The need may arise due to injury, illness, cognitive impairment, or the normal course of aging and the risk increases as our life expectancy extends. Where you live and how you receive care significantly impact the amount of this expense. In 2018, the Washington state median cost of care for services ranging from In Home Care to Nursing Home Care was $5,000 to $10,000 per month. That’s a big bite out of your egg.
No retirement plan is complete without consideration for a potential Long Term Care need.
How much care might I need?
Who will provide that care?
How will I pay for my care?
Who will be impacted by my decisions?
Many people are surprised to learn that government programs, and even health insurance plans, have limited benefits with regard to Long Term Care services. Some programs require you to meet strict financial qualifications in order to be eligible for benefits.
You can empower peace of mind for yourself by planning to protect your nest egg.
Traditional Long Term Care Insurance (LTC)
Provides a daily benefit to help cover the cost of receiving care services
Current policies are written to provide care in a variety of settings
Each beneficiary is underwritten individually based on their health and has their own benefit amount
Shared Care Long Term Care Insurance
Structured like traditional LTC, except a couple shares one benefit pool that either can receive benefit from
Asset-based Long Term Care plan – LTC Annuity
Rather than pay premium toward traditional LTC policy, a cash asset is repositioned into an annuity contract that includes a rider for LTC benefits
Can be an individual benefit or shared care benefit
The benefit pool is based on limited health underwriting and multiples of the annuity amount
If you don’t need to make a claim for Long Term Care, the asset remains and may be credited with interest.
Life Insurance options for Long Term Care Services
Cash Value Loans
Accelerated Death Benefits
Hybrid Life/LTC policies – pays a benefit as either LTC insurance or Life insurance depending on your needs.
Medicaid planning
Work with your Estate Planning Attorney and Financial Advisor to determine if Medicaid planning for Long Term Care services is a possibility for you
Medicaid Qualified Annuity is a tool that can be used on the advice of your Attorney to protect some of your financial assets while still qualifying for LTC services through Medicaid