You’re working hard to create the kind of retirement you’ve dreamed of, including kicking back and doing the things you love with your spouse, traveling, visiting family and friends, and honing your hobbies. The plan is for the assets you are building now to generate the income you need to allow you to do what you want down the road. However, your retirement income could be at risk if you don’t also plan for the possibility of significant health care costs associated with the need for long-term care. You may have to tap into your retirement savings or use retirement income to pay for ongoing health care expenses. To mitigate this risk, Long-Term Care insurance should be an integral component of your retirement strategy.
You can opt to purchase traditional Long-Term Care insurance whereby you pay a monthly premium (with premiums potentially increasing over time) for protection in the event you need care that includes everything from assistance with everyday activities while living at-home, or for assisted living, nursing home care or hospice care. Or, you can also consider taking a look at a different generation of insurance products available today: Life insurance with Long-Term Care benefits and Annuities with Long-Term Care benefits.
Life insurance with Long-Term Care benefits gives you the protection you need to pay for out-of-pocket costs associated with a mild or severe long-term care event; guarantees the premium you pay; offers you the option to cover yourself and your spouse under one policy; and provides you with a death benefit* via Whole (Permanent) Life insurance. Not only are you able to protect your retirement income, you will also be able to pay for your long-term care expenses. If you don’t need to tap into the policy for care, the assets (death benefit) become part of your legacy that you can pass on to your children.
The Annuities with Long-Term Care benefits product allows you to invest in a fixed annuity to use assets earmarked for long-term care. Your accumulated value grows at a guaranteed minimum interest rate, and when you withdraw money for long-term care expenses your funds will get credited at an even higher interest rate. There is no income tax if you use your annuity for qualifying long-term care expenses, regardless of the deferred gain (subject to monthly maximums, and premiums funded on an after-tax basis). The annuity can be purchased for a single person or two people with benefits available for both.
Owens Group works with multiple insurers that offer different types of Long-Term Care plans – from traditional to the newer products on the market. We can review each of the options available to help determine which plan best meets your needs. In the meantime, we’ve made available our Long-Term Care 2019 Consumer Guide to provide you with an overview of why Long-Term Care insurance is so critical in protecting your financial future. For more information, please call Bob Owens or Denise Kligman at 800-26-COVER.