The discussion of Long Term Care has been put off by many of us for far too long. Maybe the hesitation is because sometimes its just easier to put these discussions and decisions off.
I’m writing this article to share my thoughts on the value of Long Term Care coverage, should you eventually need Long Term Care services. Every day in the industry of personal finance I’m surrounded by the topic at hand. I’ve experienced the effects of needing Long Term Care within my client base, but also within my own family. I wouldn’t be surprised if its crossed your mind, and I’m well aware of how overwhelming the costs of care can be on a monthly basis.
Long Term Care is something I strongly recommend each of my clients take a hard look at. I could tell you story after story of individuals I’ve come across that have completely depleted their entire life savings all due to the fact that they weren’t covered or were covered for too short of a period. Consider managing the risk to your retirement assets by at least looking into Long Term Care coverage.
If you’re in your late 40’s or early 50’s it’s not too early to consider this coverage. It only gets more expensive with age. Of the policies I recommend, all of them allow the insured(s) to stay in their home and receive benefits for care provided at home. These polices don’t only pay out if you go to a nursing facility.
The bottom line is this…if you could cover the risk, why wouldn’t you? Why leave it to playing the averages? Isn’t the very nature of an average that an equal amount fall short of the likelihood as do exceed it? Which are you going to be? Are you going to be the one who exceeds the average? The truth is… you can’t answer that question; none of us can. What we can do is plan for it. Believe me, I hope you never need to file a claim. I hope you pay premiums and never benefit from them. However, please don’t think that paying for a policy that you may never use is a waste of money. It’s an investment in protecting all that you’ve worked for and are still working for. My job is to implement strategies to protect and advance wealth for my clients. Long Term Care is in many cases a cost effective way to do that. We all have dreams for what we’re saving for and I’ve yet to come across the client that hopes to one day spend all their savings on the cost of their care.
Long Term Care coverage can relieve you of many of the stresses down the road. Stresses that you or your loved ones may be faced with like….
* If I don’t get coverage, will my money last assuming I need care?
* Do I want my children to be in a position to have to spend down their assets to cover the costs of my care?
* Do I want my money to go toward that care anyway? Did I have different plans for my nest egg? Charity, funding college for my grandchildren, setting up a foundation, etc.
Many projections show that even if you get coverage, with good cost of living riders, and don’t need it for 30 years, if you, in that 31st year, did begin to need care, you would make up all of the money you had spent in premiums over that 30 year period within the first year of care received. That’s a powerful realization.
If I have a lot of money, you may be asking why you should consider paying for Long Term Care insurance? Great question! Read my answer on why the rich should consider Long Term Care here.
Buchanan Wealth Management – Securities offered through LPL Financial, Member FINRA/SIPCThe opinions voiced in this article are for general purposes only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.