HOW WE CAN HELP

Long Term Care is an integral piece of the financial planning puzzle because of today’s increasing longevity, coupled with the almost certainty of a long term care event occurring that will require such care.  Some believe they can self-fund and rely on Medicaid to cover the costs of long term care.  This is an extremely flawed and highly inappropriate planning technique, to be used only as a last resort.  Below is a description of the various long term planning options and the effects.

LONG TERM CARE

Our team worked very diligently to ensure that our client’s needs and wants were addressed and prepared for.  This was an interesting process and this will give you a good idea as to how we approach every case differently.

Self Funding a Long Term Care Event

Current Net Worth: $800,000
Net Worth at Death of Surviving Spouse: $-1,419,072

Pros of plan:

  • No assets are used to fund LTC plans or policies
  • There is a 30% chance there will never be a claim

Cons of plan:

Couple will be dependent on Medicaid. Forced to spend down all assets. Loose private room and acquire roommates

There is a 70% chance that this plan will actually happen


Traditional Long Term Care Planning

Current Net Worth: $800,000
Net Worth at Death of Surviving Spouse: $420,238

Pros of plan:

  • Client preserves assets. Will be covered in any event of claim
  • No need to deplete assets for Medicare

Cons of plan:

  • Cost is very high $10,821 close to 20% of income desired
  • Assets are depleted as long term care coverage is a casualty coverage no return of premium if no claim
  • Premiums and Benefits are not guaranteed

Asset Based Long Term Care Planning

Current Net Worth: $800,000
Net Worth at Death of Surviving Spouse: $1,182,989

Pros of plan:

  • Uses your assets to solve problem $132,278. Which continues to earn interest
  • Your Principle is protected at all times
  • Cost for lifetime benefits is reduced to $2,462 per year
  • All Assets are readily available for any emergency

Cons of plan:

  • In event there is no claim family will receive $1,267, 325 versus $1,336,929 a small price to pay to be protected against any claim size or duration

ARE YOU READY TO GET STARTED

Have you reviewed your retirement plan as of late?  Have you updated your plan to include guaranteed assets?  Have you realigned your retirement to account for the dramatic changes in the economy?  If you answered no to any of these questions, click the button below to get started with a free consultation.  We look forward to chatting with you about your financial security.