|
Long Term Care costs
may be putting your retirement funds at risk.
You have lived into your sixth decade. You
may be about to retire. Healthy
pre-retirees
look
forward to an active future. Prudent
planning involves contingencies. Something
may
go
wrong with your health - being prepared is crucial to your financial and
emotional status.
Planning for old age may sound like giving up and
admitting that you can not take care of
yourself. There is a saying,
“growing old is mandatory, it’s growing up that’s optional”.
Many have not planned to ever become the old
person who needs assistance – and
this attitude is dangerous to financial health because when reality hits, it
will be very
expensive and a drain on savings and assets. You
may become
vulnerable but you do
not want to think about needing help and relying on
the kindness of
family because you
do not have the funds to pay a professional for care. It
could happen.
Federal government statistics say half of us will need
some form of long-term care during
our lifetime. Please consider
protection now, while you are younger than you will
ever be again and possibly healthier. Long
Term Care premiums are lower now than
when
you are older. You may qualify
for preferred rates and in so doing assure
you can obtain and pay for quality care with the least burden to you and
your family.
A prudent person plans to avoid running out of
money and plans for the day their
health declines to the point where they need help caring for themselves. The
risk of
needing long term care and the cost of receiving that care is a significant
risk.
Living too long and
needing care is a serious threat to your retirement,
assets and financial security.
Please answer these questionsf:
* If you required care where would you like
to receive it, in your home or at a facility?
* Have you discussed your plans with your family?
* Who would you want to provide care and how would you pay for it?
* Which account would you spend first, which
asset would your sell to pay the bill?
* How would your lack of planning affect your family?
* Do you have a Living Will and Power Of Attorney (POA)?
* What kind of legacy do you plan to leave to your family after your death?
(I mean more than
money…I mean what memories will you leave behind?)
Planning
for the uncertain future costs of aging requires a look at
Long Term Care insurance protection as well as accumulating
enough money
to live for 30 years of retirement.
Long Term Care insurance (LTCi)
is best viewed as one component of an individual’s
overall financial plan. LTCi
protects retirement savings while allowing you control over
where you receive care. The
insurance protection provides you with the means to pay
for a higher quality of care than what you would receive in most cases,
without insurance.
LTCi protection provides relief for family members
and friends from the responsibility
of caregiving. Most contracts provide more than financial support, they offer
professional advice, additional resources and service provider discounts for care and
related
services.
As we approach our 6th decade on the planet, we are looking at
issues like how much
money are we going to need so we do not run out if we live too long (you can
purchase
annuities to assure you do not run out of money), ill health and becoming a
burden to
family members is the other major issue we face (you can purchase Long Term
Care
insurance
protection to address this issue). With proper planning, both threats to
your
retirement security can be reduced or eliminated.
Achieving retirement goals requires growing and protecting assets. LTC can
protect
families from the financial consequences of needing LTC services, either at
home or in
a facility, so retirement assets can be used for their intended
purpose.
Delaying the purchase of Long Term Care
insurance and planning for LTC puts people
at greater risk, increasing costs of aging and increasing the cost of
protection due to
advanced age
or changing health conditions. Many
who apply for LTC insurance can
not buy it at any cost due to an illness or conditions which makes them
uninsurable.
LTCi premiums are relatively small compared to the cost of paying LTC costs
out of
pocket. Even if you do not fully
insure your risk today, consider some coverage, it is
better than none and you may be able to add more later depending on your
health.
The decision to purchase LTC insurance is a major step toward maintaining your
future
independence and lifestyle. Please
take that step today and contact
me about your
options.
Rosemary
A. Reid
The Need For Long Term Care
Financial experts agree: The question of whether or not to buy
long-term care
insurance is an important part of your financial planning.
I have the knowledge, training, products and desire to work with you until
you
are comfortable enough to make an informed decision about your needs.
Auto accidents can happen to anyone, but few of us realize that this year
alone,
about seven million men and women over the age of 65 will need long-term
care.
By the year 2005, the number will increase to nine million and by the
year 2020,
12 million older Americans will need long-term care. (1)
Chances are, you pay premiums to insure your car will be repaired or
replaced
if it's damaged. Doesn't it make sense to make a similar investment in
your own
well-being?
Long-term care is NOT covered by Medicare or other
medical plans.
So who pays for it? Mostly, the person or the person's
family who needs
the care
pays the
costs. Those who pay the costs for Long Term Care can expect annual
outlays of thousands of dollars. In fact, the current total national average cost of
a nursing home stay is $136,800. This number is
projected
to rise to as much as
$495,000 by 2030. Without Long
Term Care
insurance, many tap into their savings
or turn to family members for help.
Sources:
* Health Insurance Association of America -- Washington, D.C.
"A Guide to Long-
Term Care Insurance" -- 2002.
* Mature Market Institute, "MetLife Market Survey on Nursing Home and
Home
Care Costs" -- 2003.
*ACLI "Long-Term Care Insurance -- Protection for Your Future,"
2001.
The right coverage may help you beat the rising cost
of care and allow you the
choices that you deserve..
Guaranteed Income for life is the hallmark of immediate fixed
annuities. Many
of my clients are dedicating money sufficient to pay
the
annual premium on Long
Term Care insurance. Protect your other assets
by
considering the dedication of
a lump sum now. Contact
me for more information. Earmarking $25,000 now
can be sufficient to pay LTCi premium.
Along with everything else, the cost of Long Term Care has risen in recent
years.
You
may wonder whether today's Long Term Care insurance will truly protect you
against future inflation. Features that will increase your
coverage to match inflation
can be added to the contract when purchased.
Protect your nest egg with an appropriate plan
of
care through an insurance company.
Guard your retirement savings from
Long
Term Care costs via a Long Term Care
insurance protection contract..
Long Term Care
Insurance Protection Explained.
Links:
http://www.aarp.com
AARP.
Health & Wellness; Legislative Issues; Leisure & Fun; Life
Transitions;
Research & Reference; etc.
http://www.elderlawanswers.com/resources/article.asp?id=5894
U.S. Department of Health and Human Services
National Clearinghouse for Long-Term Care
Information.
http://www.longtermcarelink.net/a9insurance.htm
About Long-Term Care.
http://CybResLLC.com/favorites/insurance.htm
Insurance
http://www.moneycentral.msn.com/content/Insurance/AssessYourNeeds/P35948.asp?Printer
Protect Your Financial Freedom.
Look at the fourth way mentioned.
http://CybResLLC.com/favorites/senior.htm
Senior
Citizen Advice
http://www.medicare.gov/LongTermCare/Static/StepsOverview.asp
Steps To Choosing Long-Term Care.
What
Defines a Qualified Long-Term Care Insurance Policy?
IRC Sections.
Are
You Protected Against the High Cost of Long-Term Care?
U.S. General Accounting Office.
Your
Longevity IQ.
An AARP article.
|