GUARANTEED LIFETIME LTC
Long Term Care that can never be outlived.
Long-Term Care is one of the least interesting concepts on the planet, yet at the same time, is one of the most Important Financial Tools used to protect your savings against the cost associated with long-term-care that aren’t all covered by Health Insurance, Medicare or Medicaid (which is NOT what you want to be on unless you have to be). Approximately 70% of people who turn 65 today will require long-term care at some point, according to the U.S. Department of Health and Human Services. With the national Median cost of a private room in a nursing home about $8,500 per month, having to pay Long-Term Care Cost can quickly diminish your savings. This type of LTC event is currently a Financial Pandemic across the entire USA; those who have experienced this have seen their Family’s Net Worth dwindle, and/or disappear.
You can secure your retirement with these guaranteed benefits through your LTC Policy or attached to a Life Insurance Plan as a CHRONIC ILLNESS RIDER and assure useful financial protection should you need certain medical services that you couldn’t afford out of pocket. Guaranteed Long Term Care Insurance policies cannot be cancelled down the road when your health changes. While you as a consumer can cancel anytime, the insurer cannot arbitrarily cancel your policy if it is Guaranteed Renewable.
Chronic Illness Rider vs. Long-Term Care Policy or Rider
The main difference between LTC and Chronic Illness is based on how the money is sent to the owner of the policy. You have the option to choose between Long-Term Care or a Chronic Illness Rider before a policy is issued and there are 2 methods of how you would receive your Claim based on what works best for you and your family.
Indemnity This is where the Insurance company sends you the client a Tax-Free check for you to hire and pay whomever you want to administer the care to your loved one which is typically done in an in-home scenario. In this plan, since a check is being sent directly to the Owner, the money can be used in any way to care for the Insured or Parent/Grandparent in need . The Amount Received per Month is TAX FREE up to Monthly HIPAA Limits (Currently $400/day or $12,000/month per 2021 Guidelines-this amount goes up each year for inflation). Any amount that can be accessed above the HIPAA Guidelines would be taxed above $12,000 of your Chronic Illness Rider. All Chronic Illness Riders pay as Indemnity. (Some LTC programs use “Indemnity,” however, most are “Reimbursement” models.)
Reimbursement – This is where the insured is assigned a Care Coordinator with most companies. This is not the old way of reimbursement. The new reimbursement may have some out of pocket costs at the beginning of Extended or a Long-Term Care event (longer than 90 days), however, once care is being administered, most companies that operate under the “Reimbursement Model'' will pay Caregivers and Facilities direct payments, so there is NO need to COLLECT RECEIPTS TO BE REIMBURSED.
So How much Long-Term Care or Chronic Illness Insurance do you need?
There is only one company in the US that offers Lifetime LTC that can NOT be outlived (Guaranteed) and can be for an Individual or a Joint Policy (Joint = 2 People on 1 Policy).
If you do NOT think you need Lifetime LTC Monthly coverage there are also Chronic Illness options for as few as 2 yrs for Long-Term Care and as long as 7yrs, which is plenty of coverage for most people. The cost of Long Term Care varies based on care setting, geographic location of care and level of care required, among other things. Use the link below to estimate the cost in your area. https://www.genworth.com/aging-and-you/finances/cost-of-care.html.
Is Guaranteed Lifetime LTC Necessary? - U Decide
The Cost of Long Term Care is expensive and steadily increasing. In 20 Years (@3% Inflation), it’s yearly forecast is currently at about $166,841/yr.
The Average Length of LTC Need:
Women – 3.7 yrs x $92,376/yr = $331,014
Married Couple - Total Potential LTC Expense based on Average = $531,162
For LTC projections in your state, see: https://www.genworth.com/about-us/industry-expertise/cost-of-care.html
Average is something that happens only 50% of the time. What if you are on the wrong side of the 50% (get dementia, alzheimers, etc)? Average Length of LTC for Alzheimer’s = 8 yrs x $92,376/yr = $739,008
Average Length of LTC Need
Graph = “Average Length of LTC Need”
Which one is the correct option, Long-Term Care, or Chronic Illness Care? There is not a correct choice, it’s purely what your family would prefer.
We can show you an example from someone very famous who chose to “Administer the Care” for his Mother (Monica, let’s figure out the best 1 article to add here. We might 1 about his story, and then he has an article that “Gives tips for Caregivers” - Here are the links to the Articles
Critical Illness/Critical Injury – These are Important Riders that can be Accessed Directly from the Death Benefit of the Policy
What is Critical Illness or Critical Injury? (Here are list of ailments it covers – heart attack, kidney disease, bad car or work accident)
What is next/action step?