Long Term Nursing Care- Home Health Care/Asset Preservation Options
- Medicare Does not Cover Long Term Nursing Care
- Three Types Custodial, Intermediate and Skills Nursing Care
- Average Cost $6,000 a month or $72,000
- Average stay 3 years
- Total average cost of long-term nursing care $216,000
- Probability of retiree needing Long term Nursing Care 60% 6 out of 10
Compare to probability of total loss of vehicle 5% 5 out of 100
Compare to probability total loss of home due to fire 5% 5 out of 1000
Options to pay for your long term nursing Care
- Self-Insure: use your own assets Dollar for Dollar for your care
- Medicaid: spend your assets for care down to the spend down limit
(Medicaid allows you to keep one house, one vehicle and $2,000)
Lose control-must go to Nursing Home Facilities that accept Medicaid patients - Long Term Nursing Care Insurance: pay a monthly or annual premium to purchase long term nursing care insurance (like renting coverage-if you don’t use it, you use it)
- Wealth Transfer with Long Term Nursing Rider: pay a monthly or annual premium to purchase permanent life insurance with long term nursing care benefits. Create a bucket of money that can be used for a living benefit, accelerate the benefit and makes the money available for long term nursing care when needed. If you do not use the death benefit for long term nursing care, the death benefit is transferred to your beneficiary income tax free.
Long Term Nursing Care Insurance
Rent-if you do not use you lose it
Rent/Premium can increase over time
No Cash Value
Example: Female age 65 nonsmoker preferred
LTC Nursing Care Policy
$216,000 Benefit Base/
Bucket of Funds for care
Wealth Transfer Life Insurance with LTC rider
Own Contract/policy with cash value/equity
Lock in premium-cannot increase with age
Does build cash Value
Premium of $4800 annual or 400 month
Wealth Transfer Life Insurance with LTC rider
$216,000 Benefit Base/
Bucket of Funds for care
Or if you do not use for nursing care
Leave $216,000 Benefit to Beneficiary
Spouse-Children-Charity etc. income tax free
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