Enjoy a Stress-Free Retirement:
No matter what you think you may know about Long-Term Care policies, read this post because times have changed and there are fantastic options available.
The confidence level of Baby Boomers at retirement is becoming increasingly tested. Many are struggling to sleep at night, uncertain about having done enough to retire and fearful of their ability to have a dependable retirement income stream, safely guard their nest egg and to have money left for their kids. As our industry continues to evolve with the changing needs of clients, we finally have a solid tool to handle all three of a client’s primary concerns in one transaction—Asset-Based Long-Term Care.
As a Registered Financial Consultant, my clients are typically well-versed on the risks and costs involved with growing older and declining health. They know dementia is on the rise and other things may require little blue pills to do the same. One of my mentors, Wesley Sykes, RFC® LUTCF®, likes to ask the question, “Who are you going to depend on to change your Depends?”
Extended care is an income issue, not an asset issue. How can families prepare for a devastating health event that may cause income needs to grow by fifty percent or more? Many people think cash-flowing an event like this is reasonable, but there are tremendous opportunities available to prevent families from spending down assets, selling vacation homes and drastically altering their preferred lifestyles. For those unable to pay for care out of pocket, insurance can protect against the pitfalls of Medicaid.
Unlike the traditional plans of the past, the premiums are guaranteed, and it is no longer, “use it or lose it.” If a policyholder is blessed to make it through life without needing to file a claim, the cash value will be passed on to beneficiaries in the form of a tax-free death benefit. If an event occurs, the cash value will be used to pay for care first and then a lifetime income rider will pay for remaining care up to the benefit limit, long after the cash value is depleted.
Without preparation, this money and much more would be spent on care, or it may cause longer suffering at home, causing undue stress to loved ones. How do we present a policy to a family that knows it will never be needed? The answer is not in statistics or talking to someone about buying insurance.
The key factor in broaching this topic with families, especially men, is to talk to them about protecting their families. We all know people who have been forced to care for a spouse, a parent, a sibling, a child, or other loved ones. How did this impact lives? Were the caregivers trained? Did the primary caregiver have to change or end employment? Were tough choices made between providing care or being at home with their own families? Were loved ones forced to choose between providing financially for their parents or for their children? How did this impact the caregiver’s health? How did this affect relationships with other family members who weren’t contributing a fair share? The key is to ask them if they would like to protect their families from experiencing these very things.
Maybe these situations have hurt you and your family. As an only child, I have first-hand experience. In the last two years, I have had to rush to my Dad’s side many times because he was heading to the ER three hours away from my house. There have been several times where I have had to choose to care for my Dad instead of being home with my family and attending their activities for a week or more at a time. Also, my Mom passed in 2004, and I know that we could have prolonged and improved her life if we would have had long-term care services available to us.
Knowing there is a protection plan available, how many people would intentionally choose to put loved ones in jeopardy? When speaking with families, we are not selling a paid-for room in a nursing home, we are protecting loved ones from being forced to make tough choices and sacrifices. We are protecting a healthy spouse from declining rapidly while caring for the love of his/her life. We are protecting the oldest daughter from having to quit her dream job or close her business to provide care, because statistically, the oldest daughter or daughter-in-law is the most likely to step up and make sacrifices.
The absolute greatest feature of this family protection has yet to be revealed. As it becomes necessary for a client to seek care, many insurance providers are offering access to care coordination agencies with all policies to navigate the entire process and to navigate the benefits of their insurance protection. The dedicated personal care manager assigned to each policy owner knows exactly which benefits are available in every situation.
One of the early benefits of LTC insurance allows loved ones and personal caregivers to get professional training to learn the safest and best ways to move, clothe, and bathe a loved one who is not yet ready for home health care or assisted living. The account manager can get the personal residence fitted with ramps and durable medical equipment to help claimants live at home longer and more safely. For families unable to drop everything and stop working to care for an ailing loved one, adult day centers are viable alternatives. For those caregivers able to sacrifice everything, respite care will pay a trained individual to stay with a loved one for up to 21 days per year to allow the caregiver time to relax and recuperate with reduced stress and less guilt.
When transitioning to an assisted living facility or nursing home becomes necessary, the account manager will provide area-specific recommendations to save families time and energy. If a resident in a senior community requires a hospital stay, the account manager will hold their placement in their current residence for up to 21 days. Without this service, there is no guarantee the preferred community will still have availability when the patient is released from the hospital. Also, the account manager handles all finances in the account up to the benefit amount, so families never have to see a bill or stress about managing the care process. These services allow family members to do their one main job—love their family members well!
There is not another product on the market that provides an additional income stream for life in a time of crisis, protects a portfolio from depletion due to healthcare costs, and may produce a tax-free death benefit to the next generation. Asset-based LTC policies are the most essential tool available to protect ourselves from a health-related disaster. Asset-Based Long-Term Care protection is essential to any financial plan.
Statistically, we are either going to need assistance or we are going to attempt to provide care for someone else. We have an obligation to protect our families and to discuss this opportunity with everyone. When family members discover you recommended this policy to their loved ones, they will thank you!
Bio:
James A. Hopper, RFC® is an Associate with Money Concepts in Indianapolis, IN and graduated from the Kelley School of Business at Indiana University in Bloomington. He was named the Crossroads Region of Money Concepts Newcomer of the Year for 2018. He also volunteers with the Crohn’s & Colitis Foundation—Indiana Chapter and with the Alzheimer’s Association.
Phone: (317) 439-4320 | E-mail: jhopper@moneyconcepts.com | Website: moneyconcepts.com/jhopper