Not Having Long-term Care Insurance Can Be the Single Biggest Devastator of Your Financial Plan
No one likes to think about needing help doing things, like dressing, bathing, eating…the kind of help
someone you know is likely needing and getting right now. Maybe it’s one of your parents, uncles, or relatives who is spending tens of thousands of dollars on help.
This is because about 60% of Americans who turn 65 can expect to use some form of long-term care during their lifetime. That’s two out of every three of us. Call it one of the biggest problems facing our nation and our individual financial security.
Yet, few people have a plan to make sure they don’t have to sell assets at the wrong time, liquidate stock, and pay taxes or, worse, pay for this kind of healthcare—something Medicare doesn’t cover!
Not being insured can be the single biggest devastator of every financial plan.
Looking forward, not many people will ever want to willingly move to a nursing home or healthcare facility—they will want to be at home.
Ironically, there aren’t a lot of insurance products available to address this need, but here’s a clever twist:
Turn your term life insurance policy into a “cash cow” if you ever need money for healthcare. Here’s how:
There are a few ‘niche’ insurance companies who sell term life insurance “with a twist.” The policies have living benefits attached, provisions that will pay for chronic and critical illness—the same triggers as with a long-term-care policy.
How it works: You get to draw against the death benefit—while you’re alive—to pay for care. Think of it like springing value from an empty oil well, except you must have the right policy. It’s not your father’s term life policy. It’s a new concept only a handful of insurance companies offer, one that isn’t largely marketed.
Would you pay 10% more to get a term life policy that you could draw on during your lifetime? What other asset or instrument can produce this result? Think refinancing your term policy just like you refinance your home.
Obviously, you have to qualify, and this approach won’t work for everyone. But don’t wait till your health changes to address this issue.
Creating a plan for tomorrow using the newest strategies and products and advancing your planning could save your family hundreds, if not thousands, of dollars and create the life and comfort you spent a lifetime accumulating and protecting.
What’s your plan?
Martin Levy, CLU/RHU, is founder of CorpStrat/Corporate Strategies, Inc., located in Woodland Hills, California. A 30-year insurance industry veteran and Lifetime Member of the Million Dollar Round Table, Martin is an expert in long-term care planning strategies. Contact: 818.468.0862 or Marty@CorpStrat.com.