Townsend Retirement Specialists offers financial advice and various wealth management resources when it comes to long-term care insurance planning. Of course, no one expects to need long-term care some day; however, we know that people are living longer, and the cost of long-term care continues to increase. Three truths are evident:
- The longer I live, the more likely it becomes that I may need extended care for a period of years;
- The physical, emotional and financial consequences of needing care for a period of years will be devastating to my family and retirement plan; and
- I need a long-term care plan.
For some, long-term care insurance is the most efficient and economical way to fund a long-term care plan. While not everyone needs, or can qualify for, long-term care insurance, everyone needs a long-term care plan. This type of retirement planning often has two main goals:
- Should I need care some day, keep me at home, in the community, for as long as possible without causing severe physical and emotional consequences to my family and loved ones; and
- Protect the retirement plan (and, of course, other assets) so that it may execute as a retirement plan, continuing our lifestyle and obligations to each other and future generations.
The time to begin formulating your long-term care plan is now! If you are interested in learning more about long-term care insurance plans, Townsend Retirement Specialists can help you evaluate this important protection. Most long-term care insurance policies allow the policy owner to choose the premium by making the following policy design choices:
- Benefit Period – the minimum length of time the benefits last should one need care at home, in an assisted living facility or nursing home. Choices typically run from several years to lifetime.
- Daily Benefit – the amount per day the policy pays for care at home or in a facility. Many carriers allow you to choose a monthly benefit.
- Inflation Protection – perhaps the most important rider to include in a policy, an inflation rider increases the benefits over time to combat inflation of long-term care costs. Several inflation riders are available.
- Elimination Period – the number of days the policy owner pays for care before the benefits begin. Popular choices are 30, 60, and 90 days.
- Shared Benefits – available to couples, this popular rider allows two people to share policies – an efficient and affordable way to stretch premium dollars.
Premiums for long-term care insurance coverage are based on your age, health, marital status, and benefit design.
Insurance is at all times a topic with lots of information! Townsend Retirement Specialists would like to provide you with some articles that we found useful and beneficial. Clients consistently ask questions about their insurance; by posting these articles and videos, you may be able to answer some of your own questions; but if not, you’re always welcome to call our office. Below, you can read the summaries to each article and follow the link.
Five Questions About Long-Term Care
Long-term care refers to the ongoing services and support needed by people who have chronic health conditions or disabilities. There are three levels of long-term care skilled Care, intermediate care, and custodial care. This article deals with the common questions that you need to know before you purchase a long-term care policy such as why you might need a long-term care policy, what expenses can you pay out of pocket and whether or not medicare covers long-term care expenses.
Health Savings Accounts: Are They Just What the Doctor Ordered
?
Health care costs are on the mind of all investors. What are the best ways to save for retirement and cover insurance and health care costs? Are your health insurance premiums taking too big of a bite out of your budget? Do you wish you had better control over how you spend your health-care dollars? This article looks at an alternative to traditional health insurance called a health savings account (HSA). An HSA is a tax-advantaged account that’s paired with a high-deductible health plan (HDHP).
Life Insurance Riders that Pay for Long-Term Care
Life insurance is valuable financial tool that has many uses when planning for retirement, including income replacement, business continuation, and estate preservation. Long-term care insurance provides financial protection against the potentially high cost of long-term care. This article examines long-term care riders and what to do if you find yourself in need of both types of insurance and how to determine if a life insurance policy that combines a death benefit with a long-term care benefit may be right for you.
Medicare Prescription Drug Coverage
Do you have questions about Medicare prescription drug coverage? Medicare drug coverage can help you handle the rising cost of prescriptions. If you’re covered by original Medicare, you can sign up for a drug plan offered in your area by a private company or insurer that has been approved by Medicare. Many Medicare Advantage plans will also offer prescription drug coverage in addition to the comprehensive health coverage they already offer. This article examines the options for you to review to help you choose the plan that best meets your needs and budget