Protect Your Retirement Assets From Nursing Homes

Why is long-term care insurance needed?

Long-term care insurance is an integral part of retirement planning. It will help pay for nursing home care costs, and also provides asset protection by providing funds for your care on a long-term basis as a result of an accident or illness.

Why should you create a long-term care plan?

The average middle-aged person is living with a false sense of security. They can't imagine a time in their life that they might need assistance with even the most basic daily tasks.? But the truth is, the majority of Americans over 65 will at some point need care for an extended period of time. Creating a long-term care plan is an important part of protecting your assets. It will help to fund your care rather than withdrawing funds from your personal assets to pay for it.

Is long-term care insurance a good way to protect my assets and my family?

Long-term care insurance gives you peace of mind knowing that you will be reimbursed for qualifying long-term care costs should the need arise.

I want to provide you clarity by addressing five misconceptions about long-term care insurance that many 40-50 year-olds have.?

?

1. “It won’t happen to me.” The good news is living a longer life has increased greatly in recent years. But that increase in life expectancy is accompanied by an elevated risk of health problems. In fact, nearly two-thirds of Americans will need some type of long-term care during their lifetime.?
2. “My health insurance will cover the costs." Most health insurance plans do not cover long-term care. And even Medicare only pays for 100 days of care in a nursing home facility.?

Most importantly, long-term care insurance gives you the benefit of flexibility of where you receive your care. Many long-term care insurance policies include coverage for you to be able to stay in your home. Allowing you to keep to your routines, stay in a familiar setting, close by to family and friends.

And even if facility care is needed, long-term care insurance allows you to choose an option that works best for you and your family, including, assisted living, adult daycare and nursing home facilities.

1. ?“I can pay for it if I need it.”? If you were to require long-term care after a catastrophic or unforeseen event, along with the challenges that come along with your medical condition, the costs are astronomical and can disrupt your financial plan for the future, forcing you to utilize money set aside for retirement to pay for your care.?

Even if you do have the assets available, when you plan ahead, you can avoid spending your nest egg to finance your care.

Consider the tax benefits as well.? While long-term insurance premiums in many instances can be tax-deductible, a withdrawal of your assets to pay for long-term care may result in capital gains tax. In addition, the benefits provided to you from your long-term care policy are income-tax-free.

1. “I will just buy it when I feel I need it.” ??Although it can be tempting to push off the expense of long-term care insurance, it is not recommended. By waiting until you feel it is necessary, you risk not qualifying due to a health condition that may develop. At that point, even if you are able to get coverage, your premium would be prohibitively expensive. Plus, purchasing long-term care insurance at a younger age will ensure a much lower premium.?
2. “I will be taken care of by my family.” ?Caring for you can quickly become a burden for your loved ones both emotionally and physically. Having long-term care insurance allows your family’s lives to continue running without disruption by providing funds for professional caregivers that are qualified to give you the medical care you need and deserve.

?

Although the thought of needing long-term care is not pleasant, by including long-term care insurance as part of your retirement plan, you will have peace of mind knowing that you have done everything within your power to protect your family from the devastating financial and emotional impact of a long-term care event. It is important that you take the time to research the available options and create a solid plan. If you need additional information, book a call with me today.?