LONG-TERM CARE
Long-Term Care Insurance Coverage's
Long-term care insurance was developed to help offset the potentially high cost of long-term care services, something many of us may experience. Long-term care can be very expensive. Costs can quickly diminish the best-laid retirement and financial plans.
Like life insurance or and annuity, long-term care insurance plays an important role in your overall financial plan. Long-term care insurance can act as a shield that helps protect assets and provide benefit dollars that may be used during a time of long-term care need.
Most people will need to tap into their life savings to pay for long-term care. This includes a 401k, an IRA, and other investment accounts. All of your assets can be used to pay for your long-term care. When the cash is gone, frequently the equity in your home will be devoured next. In order to prevent financial devastation from long-term care expenses, it is a good idea to have a financial plan ahead of time. Long-term care insurance is one such plan.
The average annual cost for a private room in a nursing home in the United States is over $95,000. The average hourly rate for a home health care provider is $22.00 per hour. By purchasing long-term care insurance, you are transferring the risk of these potential costs to an insurer and acting to help protect your assets and your retirement plan.
As with other forms of insurance, long-term care insurance deals effectively with cost, unpredictability, the transfer of risk and financial responsibility. That’s because the event that creates the need also creates the funds to address the need.
Long-term care insurance also helps protect your family by helping to relieve them from acting as the primary caregiver. With long-term care insurance in place, your family can focus on spending quality time with you, knowing that your long-term care insurance is helping to cover the cost of care that you may need.
When you add, or already have, the long-term care rider to your permanent life insurance policy, any payout is an acceleration of your life insurance death benefit.
Life Insurance and Long-Term Care mixed together can be structured in a number of ways to meet the client’s needs. The most common are: 1) monthly/ annual premium payments spread out through the years. 2) A onetime premium payment/ rollover of $50,000 or more to create an instant plan.
Like life insurance or and annuity, long-term care insurance plays an important role in your overall financial plan. Long-term care insurance can act as a shield that helps protect assets and provide benefit dollars that may be used during a time of long-term care need.
Most people will need to tap into their life savings to pay for long-term care. This includes a 401k, an IRA, and other investment accounts. All of your assets can be used to pay for your long-term care. When the cash is gone, frequently the equity in your home will be devoured next. In order to prevent financial devastation from long-term care expenses, it is a good idea to have a financial plan ahead of time. Long-term care insurance is one such plan.
The average annual cost for a private room in a nursing home in the United States is over $95,000. The average hourly rate for a home health care provider is $22.00 per hour. By purchasing long-term care insurance, you are transferring the risk of these potential costs to an insurer and acting to help protect your assets and your retirement plan.
As with other forms of insurance, long-term care insurance deals effectively with cost, unpredictability, the transfer of risk and financial responsibility. That’s because the event that creates the need also creates the funds to address the need.
Long-term care insurance also helps protect your family by helping to relieve them from acting as the primary caregiver. With long-term care insurance in place, your family can focus on spending quality time with you, knowing that your long-term care insurance is helping to cover the cost of care that you may need.
When you add, or already have, the long-term care rider to your permanent life insurance policy, any payout is an acceleration of your life insurance death benefit.
- The long-term care benefits are paid income tax free after qualifying requirements are met.
- If you never need long-term care, your beneficiaries will receive an income tax-free death benefit as long as your policy remains in force.
- If you do need long-term care, your beneficiaries will still receive the greater of any unused long-term care benefits or 10% of the based policy’s specified amount (less any policy indebtedness) thanks to the guaranteed minimum death benefit.
Life Insurance and Long-Term Care mixed together can be structured in a number of ways to meet the client’s needs. The most common are: 1) monthly/ annual premium payments spread out through the years. 2) A onetime premium payment/ rollover of $50,000 or more to create an instant plan.