The Golden Years

Will They Really Be Golden?

Planning for tomorrow can be a difficult thing. Getting older is no cakewalk either. If there is one thing that is true for every living person on this planet, it is that everyone of us will get older and eventually die. No one (yet) has ever figured out a way around this fact of life. 

Three paths lie ahead for all: live a long healthy life, die too soon, or get sick along the way. The dream of living out our “Golden Years” in a state of contentment and happiness is only true for a part of the population. Disease, disability, and dementia are real possibilities; planning for uncertainty is critical for everyone.

Americans are living longer, and as more and more Americans continue to have personal experiences with loved ones needing care or actually becoming a relative’s caregiver, the need to have a plan for long-term healthcare is increasingly apparent.

We downplay the risk of needing care. A lot of momentum is being given to research, medication, and anti-aging therapies, all of which will most certainly extend average lifespans across the globe.

Three-quarters of Americans believe that living a healthy lifestyle is the answer—but living healthy may simply increase longevity. With longevity comes the perils of aging—and the staggering costs of healthcare when we can’t do the things we used to be able to do.

More than half of Americans say that having a spouse provide for their care is their plan, yet very few spouses signed up to change diapers and most couldn’t adequately care for an aging or sick spouse, especially given their own possible health concerns. That burden then falls upon the children —61% of which say they don’t want to be someone’s caregiver. 

The likelihood of depleting assets or consuming assets intended for a spouse or legacy is strong, given that two of three Americans will need some type of long-term healthcare for at least 90 days during their later years. What’s your plan?

The insurance industry has figured out a really great solution—it’s called asset-based long-term care. It’s like a bank CD except this plan leverages up for healthcare. (Think “moving money from one pocket to the other,” with the second pocket guaranteeing you can always return the money to the original pocket—but the dollars placed in pocket “B” are bigger than pocket “A.”)

Here’s how it works: Position a lump sum in a specialty insurance contract. Quit/things change = you get your money back. Never use care = get a tax-free death benefit. You need care = your money gets leveraged up in value by four to six times. This strategy guarantees that no matter what, you never lose! And you don’t have to buy anything.

Have the conversation with the people you love and make sure you have a plan for longevity and preserving your assets—and paying for healthcare.

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