Why Plan for Long Term Care?
Long Term Care planning is often overlooked, yet it plays a crucial role in financial planning. Long Term Care encompasses various services at assisting individuals who can no longer carry out daily activities independently (NIH, 2023 These daily activities, known as Activities of Daily Living (ADLs), include bathing, dressing, toileting, transferring eating, and maintaining continence. Many are surprised to learn that Medicare does not cover long term care, resulting in out-of-pocket expenses for home care and assisted living. As our baby boomer generation enjoys increased longevity, it’s essential to discuss strategies for funding these services, especially as many may find themselves on fixed incomes and relying on support from family. This landing page focuses on insurance solutions that provide financial assistance during extended care periods.
Life Insurance and Long Term Care
Life insurance policies have evolved to where they now include "living benefits". Living benefits allow policyholders to access all or a portion of the death benefit for qualifying events such as diagnosis of a terminal illness the need for assistance with ADLs. This allows policyholders to receive tax free benefits to help pay for the associated costs of these health events. Some insurance carriers even offer indemnity benefits which means they will pay you the full benefit without the need to submit receipts for reimbursement. This means you can do what you want with the money whether it is paying for home care or paying a family member to take care of you.
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Elliott is dedicated to providing valuable information on life insurance. Our goal is to assist clients in finding the right coverage for their needs.
