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LONG TERM CARE INSURANCE

Long Term Care insurance in the United States is complex and confusing yet it is vital that Americans have some type of long term care fund or insurance in the event they experience an event that requires long term care, just take a look at the staggering statistics listed in the articles below.

There are now two ways that Americans can protect themselves against the financial pitfall of a long term care event. The fact is that 69% of Americans will experience some type of long term care event in their lifetime. In the U.S. the average cost per week for a stay in an extended care or nursing facility is $1000(shared room)-$2000(private room- see article below). But as we all know, California is far from average when it comes to the cost of ANYTHING. There are now two ways  Through a traditional long term care insurance policy or by funding an indexed

Traditional long term care (LTC)  policies are still an excellent way to protect one's self from the skyrocketing costs of long term care. But, thanks to those skyrocketing costs they are not only becoming much tougher to find but there are some pitfalls that are very important to know about. LTC policies are a bit on the strict side when it comes to how and when it will pay out for claims. Payout is usually dependent on NOT being able to perform two of the six "activities of daily living(ADL's)" which include (feeding, bathing, toileting, dressing, continence and transferring [being able to get in and out of bed or a car etc]). Premiums for these policies have continually gone up over the years as the cost of long term care has grown in the U.S. as well. But, traditional LTC policies are still a very effective way to protect one's self and get the required care needed in the event of a long term care event.

An indexed account is quite a bit more flexible than a traditional long term care policy. In this scenario one funds an account that can grow up to double digit growth in years the stock markets do very well. When stock markets go down these accounts have a "floor" that ensures the owner loses no money in that year. Additionally, there is no prerequisite of not being able to perform "activities of daily living" in order to access these funds. So, whereas a traditional LTC policy will ONLY pay out when one cannot perform 2/6 ADL's the funds in an indexed account are ALWAYS available for the participant to withdraw.

Fortunately, Complete Life and Health can help you with BOTH of these ways to fund long term care.

https://www.forbes.com/sites/wadepfau/2016/01/05/costs-and-incidence-of-long-term-care/#25aed0254ceb

https://www.morningstar.com/articles/823957/75-mustknow-statistics-about-longterm-care.html

 

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