Long-Term Care

Why Should I Consider Long-Term Care When Preparing For Retirement

Someone turning 65 today has almost a 70% chance of needing long-term care at some point in their lives.*  After the first year, the average person receives care for an additional 3.5 years.**  The average life expectancy of someone diagnosed with Alzheimer’s is 4-8 years.***

What Questions Should You Be Asking Yourself?

How could a long-term care need affect my family and my retirement strategy?  Where should I consider receiving care?
What could it potentially cost?  What are my options in covering that cost?

Public Programs

  • Medicare, Medicaid, and other federal or state-sponsored programs.

Informal Care

  • A known and trusted individual such as a family member or friend to take care of them

 

 

 

 

 

Formal Care

  • Assisted Living Facilities
  • Nursing Homes
  • Qualified in-home care
  • Adult day care

Considerations of Public Programs

  • May require a hospital stay
  • May require an individual to spend down their assets in order to qualify
  • Coverage can be limited

Considerations of Informal Care

  • Availability
  • Proximity
  • Physical, financial, or emotional impact to caregiver

Considerations of Formal Care

  • Type of service desired
  • Cost of service
  • Who will oversee care?

Long-Term Care Coverage Options

Self-Funding

  • Dedicates a portion of your portfolio to address long-term care needs
  • Potential risks include market volatility, inflation and other income needs

Traditional Long-Term Care Insurance

  • Various needs and benefits
  • Reimburses costs of qualified care

Life Insurance with an Optional LTCi Rider****

  • Death benefit acceleration for LTC services
  • May be used for formal or informal care, depending on product
  • Premium may be flexible or guaranteed not to increase, depending on the product

Linked Benefit Products

  • Long-term care benefits are usually larger than the life insurance policy death benefit
  • Premiums are guaranteed not to increase
  • Potential for Return of Premium Option****

What
are My
Next
Steps?

  • Think about a written strategy
  • Discuss it with your Licensed Insurance Professional
  • Plan for how you would fund your strategy
  • Solutions should include:

Benefit Amount
Benefit Period Length
Type of Care Received
Inflation and Rising Costs of Care
Potential Financial Impact on Current Retirement Strategy

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