Long Term Care
Long-Term Care Isn't Just About Who Pays. It's About Who Has Choices.
Most of us don’t like thinking about needing help with everyday activities someday. I certainly don’t.
But I’ve learned – both professionally and personally – that ignoring the possibility doesn’t make it disappear.
Long-term care planning isn’t simply about buying insurance. It’s about answering three questions:
- Who would care for me?
- How would we pay for it?
- What happens to my savings if care lasts for years?
It Won't Happen to Me
I Understand. My Mother Thought the Same Thing.
Years ago, I tried to discuss long-term care insurance with my mother. She didn’t buy it. Like so many people, she believed, ‘It won’t happen to me. Then, at 69, she suffered a massive stroke. After rehabilitation, she came to live with me. For a period of time, she needed an aide seven days a week. Eventually she improved and required less assistance, but she was never able to walk or speak again. I was fortunate enough to care for my mother for twelve years. I’d do it all again to have those years with her. The future doesn’t ask whether we’re ready.
Long-Term Care Insurance Isn't the Only Answer
Traditional long-term care insurance can provide substantial benefits and may be an excellent solution for the right person. But premiums can be significant, health underwriting may make coverage difficult to obtain, and some people don’t like paying premiums for years for coverage they hope they’ll never use. Fortunately, traditional long-term care insurance isn’t the only approach.
What If the Money Isn't 'Use It or Lose It'?
Certain insurance and annuity products are designed to provide benefits for qualifying long-term care needs while retaining value if care isn’t ultimately required. Depending upon the product and circumstances, these strategies may use an annuity with long-term care benefits or life insurance with long-term care or qualifying living benefits. What happens to my money if I don’t need care?
This isn't merely something I discuss with clients. My wife and I own a long-term-care annuity ourselves. We considered the risk, what care might cost, the assets we'd accumulated, the income we'd have available, and what we wanted to happen if neither of us ever needed long-term care. For us, an asset-based approach made sense. We have benefits available if qualifying care is needed, while the contract also provides value for our beneficiaries if those benefits aren't ultimately used, subject to the terms of our policy. It was right for us. Let's determine what's right for you.
Long-term care doesn't affect only the person receiving care. It can affect a spouse, children, grandchildren, retirement income, savings, where you live, and sometimes who's able to continue working or enjoying their own retirement. What would happen to the people you love if you needed care?
Depending upon someone's health, age, finances and objectives, the answer could involve traditional long-term care insurance, an LTC annuity, life insurance with appropriate living or LTC benefits, self-funding, or a combination of approaches. And occasionally the appropriate answer may be that purchasing insurance doesn't make sense. That's why we start with the situation - not the product .
Let's Talk Before There's a Crisis
The hardest time to begin thinking about long-term care is after something has already happened. Health can affect eligibility. Age can affect cost. And a family making decisions during a crisis has fewer choices than a family that planned beforehand. You don’t need to decide today whether you want long-term care insurance. But I believe you should understand the risk and the alternatives. Let’s find out what protecting your choices could look like.