In a recent New York Times article, Marguerita Cheng, a certified financial planner expressed how happy she was that her father followed her recommendation to purchase long-term care insurance at an earlier age.
Marguerita was quoted saying, “he had bought a policy when he was 68 with a $125 daily benefit with 5 percent simple inflation protections… Last year, his daily care cost $256 but almost all of it was covered because the benefit had increased to $219.75”. Unfortunately, Marguerita’s father passed on at the age of 82.
The article explained that while long-term care insurance isn’t for everyone, it can helps those people greatly that want to preserve their estate, or be able to receive top-notch home care, and quality nursing home care when their health requirements demand it.
Keith Singer, also a certified financial planner and owner of Singer Wealth Management in Florida, was interviewed and expressed that most of his clients have long-term care insurance policies. Keith recommends them to everyone with at least $500,000 in assets, and says that most people buy in the 50s and 60s to avoid the higher costs and risks of denial when buying later on in life.
Several other financial planners also discussed how some people are turning to hybrid policies that combine items such as life insurance and annuities with long-term care insurance benefits. While these types of policies can require a greater investment in premium dollars, they work because if you do not need to access the long-term care insurance benefit, you can still access potentially tax-free income in retirement.
There are a number of ways to reduce your costs when considering long-term care insurance as part of your retirement planning. These methods can include opting for a lower inflation protection rate, or longer elimination period; the amount of time that passes before LTC benefits start to pay.
Finding out what options can best fit in your unique financial situation, you should speak with a licensed professional about long-term care insurance planning today. The consults are free, and you could learn about retirement strategies that not only provide you peace of mind financially, but that also can help you maintain your dignity through quality health care when needed.
Contact your licensed California Long Term Care Insurance Services specialist today for your consult about long-term care insurance planning.