Filed Under:Health Insurance, Ltci

Financing long-term care needs with an annuity

Opinion

Photo credit: Stuart Miles
Photo credit: Stuart Miles

There’s no doubt people are living longer. Those age 85 and above are one of the fastest growing segments of the population. Consequently, insurable seniors, age 55 and above, represent a growing marketplace.

The downside of this aging population is that it may bring increased concerns; while there’s more time to accomplish goals, there are also increased risks of old age infirmity. The upside is increased longevity brings increased opportunities.

Moreover, the stress of having to attend to personal care needs such as bathing, toileting or dressing can have a negative effect on their family members.

I’ll stay in my home, besides it’s cheaper…” Not necessarily. While most of our clients would want to stay in their home, Medicare home-care benefits are designed for short-term needs. When more extensive services are needed is when the problems begin. Household help is often needed in addition to medical care and those services can run several hundred dollars or more a week. Should round-the-clock care be needed your client may need to hire more than one person. How long can they or their family be expected to cover these costs before they start depleting their assets? And any money used to cover these costs is not “earning” them money; it’s lost assets that could be used to build additional assets to help them manage in their home a little while longer or to have assets left for their spouse at their passing should the spouse need care later.

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Nichole Morford

Nichole Morford
Managing Editor

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