Asset Preservation

How a Long Term Care plan can Preserve your Retirement

Are you part of the baby boomer generation (1944-1964)? Not much remains of your parents security from company pensions. In this day and age retirement responsibility has switched from employer to employee and Social Security only provides a base level of income which most can not afford to live off of. This means it's up to YOU to save for retirement. 

Most people have been saving so they can maintain a certain lifestyle when they retire. But have you considered LTC in this equation. Hardly anyone thinks about what would happen to their finances if they or their loved one becomes disabled or needs a nursing home! It cost an average of $78,00 a year to live in a nursing home. It takes a lifetime to save $400,000 and only 5 years to spend it on medical bills. Although it may be tough to picture off the top of your head but statistics show that 40% of people using LTC plans are 18-64 years of age.

LTC covers services from custodial care in a persons home to medical care in a nursing home and most of them cover services for daily activities like eating, dressing, bathing, toileting and transferring.

If you have accumulated wealth, such as retirement and savings accounts and you think you can afford LTC expenses, then you my be highly mistaken. If you wish to leave you heirs any assets, the cost of the LTC expenses may offset what you will be able to leave behind. Yes you can borrow from life insurance policies or sell off property but in return this will greatly reduce the amount of assets you leave behind to your heirs. 

Most people do not think about a Long Term Care policy until it is to late and the damage is done. NOW is the time to start considering a LTC policy to minimize the financial risk associated with extended care and help relieve yourself and your loved ones of an future burdens. With a little pro active planning you can help preserve all of your hard earned assets and also greatly increase your options of being cared for.