Long Term Care: What and Why It Matters
Did you know November is Long-Term Care Awareness Month? Let me shed some light on what long-term care is and how it can impact your life. You will also learn what options are available to address long-term care needs.
What is Long Term Care?
LTC “long-term care” refers to the help that people with chronic illnesses, disabilities, or other conditions need daily over an extended time. This type of assistance is often necessary to perform daily living activities to keep them safe, especially if they have a cognitive impairment.
With costs being as much as $9,034 per month, according to Genworth’s Cost of Care Survey 2021, having to pay long-term care costs can quickly drain your savings. Therefore, having a type of insurance to help pay for these costs is an excellent idea for protecting your assets and ensuring you get the best care available.
Learn 10 More Facts About Long Term Care
Medicare and regular health insurance do not pay for these except for the first 100 days in a nursing home. Because LTC insurance can be too expensive, alternative long-term care benefits have been beneficial. One of which is life insurance with living benefits.
Why Does Long-Term Care Matter?
What will you do if you suddenly get sick and can’t work for a long while? Contrary to common belief, illnesses don’t just happen to older people. Illness does not discriminate in age, gender, or race.
As a healthcare professional, I see my patients struggle with this every single day. I have a family who depends on me, and I need to take care of them no matter what. But if I became sick, that level of care could be taken away. At the very least, I do not want them to be burdened and worry financially about how to pay the bills. Thus began my quest for a solution that led me to become a Living Benefits Broker with Freedom Equity Group.
If we are going to do right by the people we love, we need to ask ourselves, “How will my family do if I get sick, or if I die? How long will our savings last?”
We need to be proactive and have the solutions, and the answers to these questions. Life insurance with living benefits provided a clear and simple solution for many families, including mine, and I’ve helped my clients attain something priceless: peace of mind.
The Difference Between LTC and Living Benefits
Ease in making claims and the freedom to use the benefits
Living benefits, which are life insurance with chronic illness, critical illness, and terminal illness riders, are paid out to the insured. The individual has the freedom to disperse the funds however they want. No receipts will be required. The only requirement is a certification from your doctor that you have a chronic illness defined as needing assistance to perform two out of six daily living activities (bathing, dressing, continence, eating, transferring, toileting). Whereas stand-alone long-term care insurance benefits are paid out either to the receiver or provider of care, most are indemnity-type plans that require you to submit receipts to show proof of care provided before the plan pays it.
Unused benefits go to your beneficiary.
Living benefits are part of life insurance, so unused living benefits preserve the death benefit that your beneficiary receives upon your death. LTC policies often do not offer any benefits upon the insured’s death, so if you didn’t use it and ended up dying unexpectedly, nothing goes to your beneficiaries. However, some LTC policies may offer a benefit upon the insured’s death that refunds the premiums paid minus any benefits paid or the reimbursement might be tied to the insured’s age at death.
Affordability
As mentioned earlier, LTC premiums have been too high, and subject to price hikes even after the contract started. In contrast, life insurance premiums can be relatively lower especially when obtained early.
Having insurance that pays for long-term care protects your desire to ensure that if you do need such care, you can afford to receive it in the location of your choosing—not in a potentially subpar Medicaid-accepting facility that might not offer the health outcomes or quality of life you desire.
These products also allow you to protect your assets from the high costs of long-term care, avoid dependency, and maintain your living standards as you age.
If you haven’t considered your current life insurance lately, or know someone who may have put it off, I am offering complimentary policy reviews. Make an appointment now, and have peace of mind for many years to come. Click here to schedule it today.
November 2020 News and Updates
I can’t believe we have reached the last quarter of 2020. Halloween is over, and the holidays are upon us. We have been through a lot this year. The experiences of the past months have humbled and taught us to be resilient. For that, I feel truly grateful. My family and I recently created a gratitude jar to remind us of the many things we are thankful for during these unpredictable times. Each person writes at least one thing to be grateful for each day, including Jude, my four-year-old (with our help as he can’t write yet). Some days there are lots to be thankful for, some days less. Come Thanksgiving day, we’ll read everyone’s entry. And now I’m thinking of giving a prize to the best one!
I continue to educate people about life insurance with living benefits. Although we have newer problems (covid19), which add to old ones, the old issues are still there.
Do you have any nonperforming assets? Did you know your money sitting in a bank CD could be working harder for you in an annuity? To find out, if an annuity is right for you, schedule a meeting with me.
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Give A Priceless Gift This Season
Looking for a gift to give to a child or family member this holiday season? How about a gift that increases value over time, that is not affected by what happens in politics, or the stock market? Talk to me about gifting someone you love, not just peace of mind but an asset that lasts and increases in value.
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Sheilla Vidal is a Retirement Income Certified Professional RICP® and life insurance broker. Sheilla is also a physical therapist, wife, mother of two, and one of the caregivers for her 85-year-old father. She is an avid learner. She writes, speaks, and recognizes that her work in helping clients live with dignity is her God-given mission.
