Know Your Options for Long-Term Care

Helping Individuals and Families Plan for the Future

By Brian Kudick Financial Advisor, Wells Fargo Advisors, LLC –

Know Your Options for Long-Term CareDo I need long-term care coverage? Will I have enough for retirement? What are my options and how do I know what will work best? These are all very important questions. It is crucial to evaluate your current assets and situation and to make a plan, both for you and the legacy many long to leave behind.

Possibly the greatest gift you can give yourself and, in turn, give your family is to plan for the future. I have the knowledge and experience to help individuals and families navigate these many questions and provide solutions customized to their needs.

As life expectancy moves upwards, so does the need for long-term care.
It may surprise you to realize that approximately 70% of Americans now turning 65 will need some form of long-term care during retirement.1 $80,000 is the national average for one year of private nursing home care. How long will your savings last? Will your loved ones be able to support that cost?

If you knew there was a 70% chance that you would have an event in your future that would end up costing you tens of thousands of dollars a year for the rest of your life, wouldn’t you pay special attention to making sure you were covered? If you think about it, people hope to never file a claim on their homeowners, automobile, or life insurance policies. But that doesn’t stop people from owning coverage that protects against real risks. The financial risks are too high and the potential burdens to loved ones are just too great to simply do nothing.

1 National Clearinghouse for Long Term Care Information, U.S. Department of Health and Human Services: Planning for LTC. Date accessed: 01/18/2012.

Multiple options for long-term care:
Long-term care insurance is not the only option for “long-term care.” There are several options available, including:
. Whole life insurance with a rider to cover long-term care needs
. Annuity with a rider to cover long-term care needs
. Long-term care insurance

Each of these has different benefits which are reviewed and discussed in detail at a free consultation. My goal is to partner with you to provide the very best and most affordable options for your retirement and long-term care needs.

How much will it cost me?
“It really can be as little as a cup of coffee a day.”

The earlier you purchase the plan, the more likely you are to get lower costs. For example, a 50 year old is generally able to purchase a policy for a lower cost than a 65 year old.

For those of you who believe you can beat the odds and are concerned about paying for something that you do not use, there are return-of-premium options and life insurance or annuities that provide benefits to those who are concerned about never needing care.

The annual premium for long-term care insurance depends on a number of factors, including: age and health of the recipient, duration of benefits, amount of benefit, elimination period, and any provisions made at the time of purchase.

Start early and lock in a lower cost.

When should I start planning?
Now. You will never be younger or healthier than you are today. Changes in your health can happen at any time and can make it impossible for you to obtain coverage later. That’s why it is imperative that you start planning now, when you have the most options and can select just the right plan for you (and your spouse).

Approximately 350,000 new policies are purchased each year. The average age of a new buyer of long-term care insurance is 57 and more than 50% of new policies are purchased by couples (partners).2

Why should I plan for long-term care?
Many people do not realize that long-term care goes beyond medical care and nursing care to include the assistance you could need if you ever have a chronic illness or disability that leaves you unable to care for yourself for an extended period of time. You can receive long-term care in a nursing home, assisted-living facility, or in your own home. Though older people use the most long-term care services, a young or middle-aged person who has been in an accident or suffered a debilitating illness might also need long-term care.

Beyond nursing homes, there is a range of services available in the community to help meet long-term care needs. Visiting nurses, home health aides, friendly visitor programs, home delivered meals, chore services, adult daycare centers, and respite services for caregivers who need a break from daily responsibilities that can supplement care given by family members.

Why is it more important for women to plan for long-tern care?
Long-term care is an issue of particular importance to women. Women are often impacted as providers of care for spouses and, ultimately, as recipients of care. Women generally live longer than their male counterparts and are far more likely to require long-term care. Statistics show that women receive more benefits from long-term care than males; in some cases women receive nearly four times as many benefits as men.

Free consultation for you and your family
Understanding how your long-term care needs will affect your retirement is essential to putting together a retirement income plan that truly meets your needs. Few people approaching this time in their lives have all the answers. That’s why sitting down with your Financial Advisor can help you make more informed and realistic decisions about what lies ahead.

Call Brian Kudick, your local Wells Fargo Financial Advisor, for a free consultation to learn more about these very important options, 941-749-3259.

2. American Association for Long-Term Care Insurance, 2010 LTCi Sourcebook.

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