Often difficult to discuss, the most critical to plan for, long-term care is the elephant in every retiree’s room who have yet to formulate a plan for providing care when the time comes.
Government and industry statistics all agree that over 70% of American retirees will require care for some period of time in their life. The average length of time for that care to be provided is 30-40 months. And the cost is greater or less depending on where and how care is provided. But one thing for sure, the risk is great that it will eventually take an emotional as well as a financial toll on the family and the estate.
Responsible preparation in advance cannot eliminate the issue, but it can reduce the emotional and physical strain on the other family members and the financial strain that might be suffered by the surviving spouse as so much of his/her assets are decimated by unplanned-for nursing expenses.
Many people purchase traditional long-term care insurance which provides substantial benefits to cover the cost of care in the home, assisted-living facility or nursing home. But many more do not, because of the perceived high cost and their ability to avoid it by denying that they will ever need it. But when you consider that each month of benefits received will typically recover one year’s worth of premiums, the economic value is substantial.
Yet many people with sizable assets object to the possibility (probability?) that they will never use the benefits and ultimately the premium they pay for insurance is lost. To address this issue and still provide our clients with a quality planning tool, we created the concept of “linked-benefit life”. By using a life insurance policy that could pay its benefit early to reimburse the insured for long-term care expenses, we took the “use it or lose it “aspect out of the equation and literally provided a responsible way to plan for care while knowing that if never needed, all of the money committed to the plan plus a respectable return will be passed on as a legacy to the family or charity.
For the past 25 years we have been offering this approach to our clients who have sufficient assets in their portfolio to simply move funds from one investment to another and accomplish a solution to this issue without the need to pay non-refundable insurance premiums.
In the spirit of offering the each client the most cost effective and appropriate solution for addressing the number one issue that assaults their lifestyle and their assets, we have provided a variety of options, some of which include:
• Linked-benefit life, the asset-based solution to long-term care planning
• LTCi planning using the finest and most cost effective conventional products.
• Tax deductible insurance plans for business owners and employees of corporations.
• Group long-term care programs for employers
• Annuity-based strategies which allow the client to double or triple the value of savings in an annuity and receive tax free income to pay nursing costs if needed.