Next to outliving their income, seniors’ greatest fear is the cost of long-term care. Statistically, 50% will require some form of long-term-care, and the average cost in most parts of the country averages $60,000/year and is on the rise.
They tend to deal with this risk by:
- Living below their means
- Rolling the Dice and hoping they never have the need
- Relying on family
- Purchase traditional Long-Term-Care insurance
Choices 2 and 3 are not only bad ideas – they’re not plans at all. Choice 1 is sad and unnecessary, and choice 4 – long-term-care insurance is both costly, and a use-it-or-lose-it proposition.
There’s a relatively new product out there called a Hybrid long-term-care policy. It’s a Fifth choice – and a great alternative for many.
Take for example a 65 year old female who repositions $100,000 from a low-yield investment like a CD – into one of the more popular products in this category.
She’ll immediately have a bucket of $450,000 for long term care costs, payable at $6,250/month for 6 years.
If she never needs it for long term care, her estate will receive a $150,000 tax-free death benefit. And if she changes her mind at any point in the future – she can get a full refund of her full $100,000 without penalty or fees (and perhaps with a bit of interest added).
In other words – she can’t lose – not a single nickel – and her plan won’t cost her a dime. Not a bad deal. Reply if you would like to learn more.