Updated: Dec 20, 2021
A man in his late 80s, suffering from both dementia and routine falls, could no longer be cared for by his wife in their home. Their only option available was a skilled nursing facility costing more than $70,000 annually. They had a small amount of savings, a modest home that was mortgage free, a small pension, social security, and no long-term care insurance. Since he is in good physical health, he may require care for several years. The wife’s only options are to deplete her savings and sell their home, leaving her with very little security should she require medical attention in the future.
Almost universal among seniors is the desire to maintain their independence and not become a burden to their children. And yet, for seniors who have made no financial preparations and then later need assisted-living or long-term care, they could in fact become a burden to their families in both emotional and financial terms – far beyond what they might have imagined. Eroding the security of a surviving spouse and depleting their children’s retirement savings are just a couple ways that families are impacted.
Seven out of 10 people will need at-home care, assisted living or full-skilled care, yet less than 20% of people have long-term care protection. Why? Conventional long-term care insurance costs have become excessive, with some premiums even doubling in just five short years. Also, you lose every dollar you pay into it if you never need it.
But I have found an exciting and affordable alternative to conventional long-term care that is available for both individuals and couples called Asset Based Long-Term Care. Essentially, you make a one-time investment (or multiple payments) and receive a multiplied amount that can be used, tax-free, for long-term care costs. If you don’t use your insurance, the amount you paid plus interest can either be left to your heirs or withdrawn by you later in life. You can even use IRA money to fund your investment.
Is Asset Based Long-Term Care insurance right for you? To learn more, do what my wife and I did and contact Yvonne Marsh, CPA, at Marsh Professional Group at 865-662-2162 today for a complimentary consultation.