Americans spend around $500 billion annually on long-term care, the average length of stay is around three years, and people must spend down their assets to almost nothing before going on Medicaid. Currently, the cost of Long-Term Care is around $150,000 per year with an average of three years of care. This means to self-insure for Long-Term Care you need $450,000 per individual and $900,000 for a couple. Not only that, but you will need to keep up with inflation and not be subject to market risk. This is not chump change! The Long-Term Care planning discussion is real, and it is complicated.
Thankfully, you have Pacific Insurance Group to help.
Americans spend around $500 billion annually on long-term care, the average length of stay is around three years, and people must spend down their assets to almost nothing before going on Medicaid. Currently, the cost of Long-Term Care is around $150,000 per year with an average of three years of care. This means to self-insure for Long-Term Care you need $450,000 per individual and $900,000 for a couple. Not only that, but you will need to keep up with inflation and not be subject to market risk. This is not chump change! The Long-Term Care planning discussion is real, and it is complicated.
Thankfully, you have Pacific Insurance Group to help.
1. Financial Protection: Helps preserve savings and retirement funds.
2. Choice of Care: Coverage for home care, assisted living, or nursing facilities.
3. Reduces Family Burden: Alleviates caregiving pressure on family members.
Sometimes willful ignorance can get the best of us. Have you ever heard this one? “My spouse will take care of me, and our kids will take care of them.” Think about your oldest living relatives right now who are married. Could either one of them pick the other up and lift them into a chair? Did your parents, grandparents, aunts, and uncles probably think the same thing? What ended up really happening?
Look, the 800lb gorilla sitting in the corner is the fact that traditional Long-Term Care policies sold in the past have had rate increases. Why did the rates increase? Because more policyholders activated their long-term care benefits, and the actuaries at the insurance companies made a miscalculation, oops, sorry. Insurance companies had to increase the premium it is cause and effect, premiums collected to the monthly LTC benefits paid to policyholders. Did the insurance companies intentionally do this? No, they underestimated the claims, more policyholders triggered benefits than expected. Does it matter now? Not really, if anything it proves the importance of proper planning around long-term care.do this?relatives right now who are married, could either one of them pick the other up and put them into a chair? Did your parents, grandparents, aunts, and uncles probably think the same thing? What really happened?
Good news! There are more options now than ever when it comes to using insurance products to plan for long-term care. New “Leveraged Long-Term Care” solutions have guaranteed non-cancellable premiums that can never increase, provide tax-free benefits, and return your money if you don’t trigger long-term care benefits.
In the past people understood the risk and were open to LTC insurance. In fact, the conversation was around who has the best deal for Long-Term Care insurance? Was it GE Capital, John Hancock, or CNA? Today the conversation has changed, is it a good idea to purchase LTC insurance or self-insure? I am not sure when or how the conversation transformed, but it definitely changed.
Here’s the deal, a lot of people cannot qualify for long-term care insurance because it involves medical underwriting, so they are forced to “self-insure” for Long-Term Care. But after speaking with dozens of clients, we realized that a lot of folks have no idea what “self-insuring” actually looks like. At Pacific Insurance Group, we’ve come up with a “Long-Term Care Self-Insured Plan” that has to do with utilizing section 213 of the IRS tax code, but just like the “Big Mac sauce,” we are trying to keep it a secret for as long as we can.
Give us a call today at 425-246-4222 and we’d be happy to share it with you.
Check out our article on “The Truth About Self-Insuring for Long-Term Care.”
IT IS BETTER TO LOOK AHEAD AND PREPARE, THAN TO LOOK BACK AND REGRET
Long-Term Care insurance typically involves underwriting and a lot of people are declined, which means these people have no choice but to self-insure.
Americans spend around $500 billion annually on Long-Term Care, the average length of stay is around three years, and people must spend down their assets to almost nothing before going on Medicaid.
A lot of people say they are going to self insure for long-term care, but don’t actually have a plan to do it. Many people are uninsurable, and their only choice is to self insure.
Why Care about Long-Term Care Costs – and Why a Traditional LTC Policy May Not Be Best No wonder so many people are worried about
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