The Retirement Stool
Why People need to People need to view their retirement as a three-legged Stool.
With over 70% of people needing long-term care insurance in their life time, and over 10,000 people retiring every day, have the proper long term care insurance is more important than ever.
What settings does Long Term Care Insurance Cover?
Long Term care insurance coverage plans differ, but generally they cover
-Home Health Care
-Assisted Living Facilities
What is the retirement Stool? How do I not fall?
- The First Leg is their guaranteed income which you and your partner must live off.
- The Second Leg is your estate, what is going to be left to your heirs and offspring. Be it your house, land, investments, equities’.
- The Third Leg is the one most people forget. It is their Long-Term Care Insurance which covers home health care, nursing facilities, and hospice. A lot of people think their Medicare or health insurance covers these things. But they don’t. In fact, until your estate and guaranteed income is drained to below $2,000 you will not have access to Medicaid nursing facilities. Not to mention there is no guarantee that these institutions will be around in the future, a recent bill was proposed to cut Medicaid funding by 70 million dollars.
So How do I Pay for Long Term Care?
We are fortunate companies have found new and innovative ways to provide long term care coverage, without breaking the bank. Conventional Long-Term Care Insurance required annual or monthly premiums to provide coverage. Much Like Car Insurance, once you stopped paying, the coverage was gone. Doesn’t sound like a good deal does it? To make things even worse the premiums were never guaranteed. So, companies could raise rates on you at a moment notice, and you were given an option of either increasing your payments or trying to look elsewhere and re qualify for new coverage.
Thankfully these products have been priced out of the market to make way for more competitive hybrid policies that address the many short comings of conventional long-term care insurance.
Policies such as One America Asset Care 3 which used qualified Money, like your 401k/IRA to fund your policy. Or Things like American General Quality of Life which is an easy way to bundle both your Life insurance and Long Term Care or Critical Illness protections.