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Long Term Care Solutions


There is an old saying that “you don’t know how fortunate you are until you lose your health.”

In today’s times, if you become ill, need an operation, have an accident, or require hospitalization, you probably have Medicare, private or medical health insurance from work.  These insurances cover health care when medical care is needed.  

However, if custodial care is required you are generally own your when it comes to paying for care. Custodial care is generally defined as assistance with routine activities of daily living (ADL’s). There are six basic ADLs: eating, bathing, dressing, toileting, mobility, and continence.

Most people prefer to receive care in their own home or at an adult day care center.  If this becomes too costly, an assisted living facility might be a consideration.  Many times, a nursing home is the answer if you need to receive a higher degree of care than available in an assisted living environment.  

Many retirees or those who are nearing retirement have common concerns about how to pay the high cost of Long-Term Care (LTC). If you are married, how would paying the cost of LTC affect the lifestyle of your spouse?  How long will your money last?  Will you still be able to leave a monetary legacy for your loved ones?

The common choices to pay for custodial care are, pay the cost out-of-pocket, buy traditional LTC insurance, or spend down your assets to qualify for Medicaid benefits. LTC insurance premiums, however, will likely increase as you age, and if you ultimately don’t need or use the benefits, normally there is no reimbursement.  Another thing to consider is that Medicaid will pay for skilled nursing care but does not defray the cost of LTC for custodial care. 

Today there are companies that specialize in helping to protect one’s assets, while helping pay the cost of needed care. If you need permanent assistance with at least 2 ADLs, or if you become cognitively impaired, you can qualify to receive benefits.  

Recently, insurance companies have developed enhanced strategies that usually involve annuities and asset-based life insurance, in which you can get your money back if you don’t use the benefits. Some of these companies have developed additional product enhancements using the Pension Protection Act of 2006. Another possibility is term life insurance, which can also pay LTC benefits.

Below is a series of five short videos that provide alternative solutions to buying LTC insurance.  These describe a plan of action which can enable you to protect your income and assets. They include structured tax-free strategies which can offset the high cost of long-term health care and can provide benefits for the remainder of your life, even if your assets have been exhausted. If you don’t use the benefits, you can get your money back, including possible growth. Your premium is locked in and will never increase. 

I hope you find the videos helpful. Call me to discuss how we can tailor solutions to meet your specific needs.  Paul Fair (610) 478-9500

Using IRA’s

Index Annuities

Low Yielding Funds for TAX-FREE Benefits

Using an Annuity You Already Have

Using Term Insurance