Doctor’s Rounds™

*The views expressed by the authors below do not represent the views or opinions of MD Preferred Services.


Why is long term care insurance important for you?


Monday, May 02, 2016

No retirement plan is complete if it has not addressed long term care.  We work so hard to accumulate assets for a secure retirement. Too many of us fail to build a fence around those assets so that health care events won’t needlessly erode our family’s lifestyle.

What is long term care?
Think of how you started your day.  You bathed, dressed, had breakfast, drove to work or used public transportation.  What if you couldn’t do these every-day activities for yourself whether as the result of an accident, an illness or just the frailty of old age?  Who would be there to help and how would you pay for it?  What would the consequences be to you and your family if you were to require care for an extended period of time?

Some people think they have enough assets to self-insure the risk of requiring care but fail to understand the extensive costs that can result from the extended need for long term care support.

The best way to address this important financial issue is to ask some basic questions:


1. What would the tax consequences be from selling assets to pay for care?
2. What would happen if I was forced to prematurely dispose of assets in a down market?
3. What would the consequences be for my family if I required care for a long period of time?

If you properly plan ahead and fund your strategy based on your particular financial picture, then you or your designated person will maintain financial control no matter what happens.

But doesn’t my health insurance cover long term care?  No.
What about my disability insurance?  No.


Your health policy pays for doctors, nurses, hospitals and some rehabilitative care but not for the ongoing personal care or assistance with every-day activities.  Your disability insurance replaces some of your lost income to pay for your living expenses but not for the high cost of caregiving.

The fact is long term care doesn’t happen to you.  It happens to those you love, and the earlier you take steps to address the long term care risk the lower the cost.

Take advantage of your age, your health and possible tax benefits.  Doesn’t it make sense to find out more now?

What is my next step?

Contact Melissa Barnickel at 410-557-7907 or email [email protected] or visit our website www.baygroupinsurance.com

Comments

Post has no comments.

Post a Comment






Captcha Image