Protect clients’ personal and retirement assets from long-term care impairments


Any type of unreimbursed long-term care expense, whether for a mental or physical disability, can completely ruin a client’s personal and retirement plans.

The arrangements clients make in advance will determine the quality of their lives and that of their families in the future. While no one wants to think about or arrange for these kinds of unfortunate situations, the fact remains that an increasing percentage of our population is affected by some sort of disability. About 10 million Americans suffer from some form of dementia, while 2 million new cases are reported each year. A majority of people over the age of 80 are diagnosed with some form of dementia. This is in addition to the countless people who face old age and have serious health problems. The question becomes to what extent, and to what extent, should their personal and retirement funds be used to care for them?

The next question is, where will the money come from to pay for the necessary care? Which assets will be protected and which assets need to be liquidated? This problem is compounded by the fact that their retirement assets will need to be dumped, but further exacerbated by the fact that it may need to be done at the worst possible time when the market is in a down cycle. Confidentiality issues can also be an issue for the whole family in the case of a single spouse who is not able to make the right financial decisions if the advance planning guidelines (i.e. slide cognitively. Plus, he There can be unnecessary delays and expense if the courts have to intervene in a guardianship Guardianship is not only costly, it often leads to a lot of additional stress, unwanted publicity and delays if proper arrangements have not been made in advance.

Someone or some entity will always have to pay for your client’s care. Whether it’s family and friends providing the care, or the funds to pay for professional care come from their own investment portfolio, the best alternative would be payments from a qualifying long-term care insurance product. to tax. My more than 35 years of experience as a CFP and CLTC has demonstrated that a sick spouse will receive a better quality of care when funds come from an insurance company, rather than from their own funds previously allocated for their retirement. . Many people mistakenly believe that their spouse or children will be able to provide the care they need. But unfortunately, nothing is further from the truth, as family members may be physically and emotionally unable to provide the necessary care, or the children are too busy and involved in their own lives.

Too often, individuals wait too long to consider availing themselves of the long-term care insurance option to pay for these expenses, and when they are ready to apply for coverage, either their health or their health. age or excessive costs prevent them from obtaining such protection. A long term insurance contract can be purchased to provide a fixed amount of $ 100 to $ 500 on a daily basis, indexed to inflation. Coverage can pay a benefit for a minimum of two years to a maximum of six years, after a waiting period. Most contracts are comprehensive in nature, which means that they will pay for care in an insured’s home, an assisted living facility, or a qualified nursing home. They will pay for all levels of care, including on-call care when someone needs help with activities of daily living (i.e. caregiver or homemaker. skilled care provided by a nurse or occupational therapist, as well as intermediate care, which is a combination of the above.One of the most important benefits of coverage is to provide the services of a ‘care coordinator’, whose function is to set up many support services, such as organizing the transfer of a person from a hospital to a rehabilitation center, to his home, to provide assistance, or to go to a living community assisted or in a qualified nursing facility.

The reason many people are reluctant to take out such a contract is because they fear paying for a policy and never needing to collect benefits. Due to the Pension Protection Act, an option known as a “tied” or “combined” life and long-term care product is available and allows an individual to access tax-free distributions from the pension fund. death benefit from a life insurance policy pay for any qualifying long-term care expense. The benefits of either diet are available in the event that a person is unable to perform two of the activities of daily living, or in the event of any type of cognitive impairment, as diagnosed by their physician.

The Pension Protection Act also helps avoid tax on the earnings of an annuity contract if it is used to purchase a long-term care contract.

A long term care insurance contract is one of the best ways to provide a client with the peace of mind that is so important, as well as to protect the independence, dignity and lifestyle of the client. retirement for him or his spouse. A family has an interest in looking after their loved one rather than looking after them. To do this, a client should consult with an elder law lawyer and explore the need to plan ahead of the crisis while in good physical and mental health. They should also consult with a certified CLTC One to discuss the different types of long-term care disability coverage before age 75, as they are not available after that age. A tied or combined benefit can be purchased beyond the age of 75, but can only be obtained while a person is still in good health and may be eligible for such coverage.


Leave A Reply