One of Ben Franklin’s more well known quotes is “By failing to prepare, you are preparing to fail.” It basically means to BE PREPARED. Think like a Boyscout. Have a realistic plan of attack and a systematic approach for getting where you need to be. While preparing to write this week’s article, I was glancing at some clippings I found in newspapers and magazines. Some that jumped out at me were… “Time for a Plan B”, “Boomers Be Prepared”, “Plan for Today, Tomorrow and the Future” and “Choices Have Consequences”. They are all talking about planning ahead so that we can live our later years the way we want.
One of the least planned for issues is Long Term Care. Most of us have worked and planned ahead to try and have a good retirement where we can enjoy life more and just take it a bit easier. But if you don’t have a plan in place to address the potentially drastic costs of Long Term Care down the road… all your hope’s and dreams for retirement could be wrecked. So, why don’t people plan more for Long Term Care? One reason is because most people are looking at the negative side of the issue (going into a Nursing Home) and sometimes miss the whole point of the planning. This same problem comes up when people are discussing Life Insurance… it means thinking about the issue of death down the road which is the negative side of the problem.
You may be asking yourself where is the positive side of all this? If you think about discussing Life Insurance, the positive side is the thought of taking care of your loved ones. Being able to pass on an inheritance so that your spouse or kids can have a good life and accomplish things they might not have been able to without the Life Insurance proceeds. Many College’s, Library’s and Museum’s have benefited from bequests in this way. Kids have gone to college or had a better start in life due to Life Insurance Proceeds. Those are the positive aspects of Life Insurance.
When it comes to Long Term Care planning, the positive side is the choices it gives you. When you mention Long Term Care to people, they normally immediately think of going into the Nursing Home, a place most of us prefer not to end up at. Most of us would prefer to stay at home as long as possible having our friends and family around and being in a familiar environment and being able to make all the decisions on how the day is going to unfold. Long Term Care planning helps you do this. The next step might be to move to an Assisted Living Facility where you might need some extra help but still are fairly independent. The last stop would be the Nursing Home. Again, Long Term Care planning lets you have the choices to be where you want to be and not get forced into moving before you are ready.
I have found one of the best tools to use in this planning is “Asset Based” Long Term Care (ABLTC) plans. These type of plans use either a Life Insurance or Annuity based chassis instead of the more common health insurance based chassis that many folks don’t like. ABLTC plans guarantee NO PREMIUM RATE INCREASES…EVER, a choice of how you pay for it (single premium or pay-as-you-go) and best of all, if you don’t use the benefits…They pass to your heirs…In many cases, Income Tax Free! In many situations, you could use an old Annuity, old cash value Life Insurance, CD’s and even IRA’s and 401k type funds to fund these plans by simply repositioning some existing assets! Give me a call at 309-297-0296 or email me at firstname.lastname@example.org to discuss these ideas. If you were referred to this site by another agent, please give them a call.