Planning for tomorrow can be difficult. Getting older is not a piece of cake either! If there is one thing that is true for every living person on this planet, it is that each of us will grow old and eventually die. No one (yet) has found a way around this reality.
One of the three paths open to all of us: to live a long and healthy life, to die too early or to fall ill along the way. The dream of living our “golden years” in contentment and happiness is only true for a part of the population. Illness, disability and dementia are real possibilities. Planning for uncertainty is essential for everyone.
Americans are living longer. As more of us continue to have personal experiences with loved ones who are in need of care, or actually become caregivers of a parent, the need for a long-term health care plan. term is becoming more and more obvious.
We minimize the risk of needing care. There is a big boost in research, drugs and anti-aging therapies, all of which are sure to prolong average lifespan across the world. The belief that you will be the exception is just one Americans’ way to go wrong and put off creating any kind of plan. (A Gallup Survey 2020 found that less than 50% of Americans have a willpower!)
Three-quarters of Americans think “living a healthy lifestyle is the answer,” but living healthy may just increase longevity.
With longevity come the dangers of aging — and the enormous costs of health care — when we can’t do the things we used to do.
More than half of Americans say “having a spouse to take care of them is their plan”, but very few spouses signed up to change diapers, nor could they adequately care for a spouse. aging or sick, especially given their own health problems. This burden then falls on the children, 61% of whom say they “don’t want to look after someone”.
The likelihood of depleting assets or consuming assets intended for a spouse or inheritance is high, given that 2 in 3 Americans will need some type of long-term health care for at least 90 days over the course of of their last years.
What’s your plan?
The insurance industry has found a very good solution. This is called asset-based long-term care. It’s like a banking CD, except this plan is based on health care. (Think of “transferring money from one pocket to another”, with the second pocket to guarantee you can always put the money back in the original pocket, but the dollars placed in pocket B are bigger than pocket A.)
Here’s how it works: Place a lump sum in a specialized insurance contract. If your situation changes, you get your money back. If you never use care, you get a tax-free death benefit. But, if you need care, your own money is multiplied by 4-8 (depending on age). This strategy ensures that no matter what, you never lose. And you don’t have to buy anything.
Chat with the people you love and make sure you have a plan for the longevity and preservation of your assets and paying for health care. After all, it’s your life.
Martin Levy, CLU / RHU, is founder of CorpStrat /Business strategies inc., located in Woodland Hills, California. A 30-year insurance industry veteran and life member of the Million Dollar Round Table, Levy is an expert in long-term care planning strategies. You can reach him at (818) 468-0862 or [email protected].
Learn more about Martin’s thought leadership here.