Long Term Care Insurance

The Need for Planning


One of the greatest fears of older Americans is that they may end up in a nursing home. This not only means a great loss of personal autonomy, but also a tremendous financial price. Depending on location and level of care, nursing homes cost between $40,000 and $80,000 a year.


Most people end up paying for nursing home care out of their savings until they run out. Then they can qualify for Medicaid to pick up the cost. The advantages of paying privately are that you are more likely to gain entrance to a better quality facility and it eliminates or postpones dealing with your state's welfare bureaucracy--an often demeaning and time-consuming process. The disadvantage is that it's expensive.


Careful planning, whether in advance or in response to an unanticipated need for care, can help protect your estate, whether for your spouse or for your children. This can be done by purchasing long-term care insurance or by making sure you receive the benefits to which you are entitled under the Medicare and Medicaid programs. Veterans may also seek benefits from the Veterans Administration.


Options for Long Term Care:

  • LTC Policies (Usually purchased by age 60)
  • LTC Asset Transfer - Protected "emegency funds" with a guaranteed return if not used
  • MoneyGuard -Your just-in-case funds which expand its value by a factor of nearly 6, includes a death benefit and offers full Return of Premium

    **Whenever I ask my clients what part of their assets that they will use first if a long term care needs came up the answer is always cash .. the money that they have set aside in a CD or Money Market for emergency purposes. Typically these assets are generating net, after tax, returns of less than 2%. Wouldn't it make sense to transfer these assets to an insurance company where the benefits will be multiples of the transferred amount whether it be death or for long term care? And if the insurance company provided a guarantee that no matter what happens, even if one decides sometime in future that the coverage is no longer needed, the company will return - at the very minimum - 100% of the transferred asset?

    5 Questions to Ask Yourself About Your Long Term Care Plans
  1. Who helped you with your Long Term Care Plans?
  2. What are you planning to do should you or your spouse need long term care?
  3. Where is the money with which you intend to "self-insure" if you have no formal plans?
  4. How much do you think you'll need for long term care?
  5. Why would you want to self-insure when there is a smarter way?

Please contact us for specific information on LTC products available to Expats