Crunching the Numbers: The Shocking Cost of Long-Term Care in 20 Years
Picture this: In 20 years, high-quality long-term care might set your clients back a staggering $250,000 per person per year, and that’s not even factoring in medical treatments or prescription meds. Can their financial plans weather 2-4 years of skyrocketing care expenses? It’s a reality check many retirees haven’t had, and they often lack the resources to handle this unforeseen blow.
Unforeseen Realities: Can Your Plan Survive 2-4 Years of High-Cost Care?
Long-term care costs have risen faster than inflation for years because they are based on the most inflationary sectors – medical and elder care. Most folks dream of a healthy, cost-effective retirement, but the truth is that conditions like Alzheimer’s and chronic diseases don’t play by those rules. They demand increasing care as capabilities decline over time.
So, what can you do to ensure your clients’ financial security in the face of this looming risk? We’ve got you covered
Imagine a hypothetical couple, ages 63 and 58 today, who’ll require long-term care at age 85. Brace yourself – they’re looking at shelling out over $1.6 million for residential care over their lifetime, assuming a conservative 3 years of care. These numbers are based on Genworth Financial’s Cost of Care Survey.
From $1.6 Million to $130k: How to Secure Your Future Long-Term Care
But, here’s the twist: That daunting $1.6 million expense can be reined in today to a mere $130k investment in life insurance policies with adaptable death benefits that can also cover long-term care expenses. How, you ask?
See, The long-term care policy calls for gross payments of $237,000 over 32 years. By investing $100k in an annuity today, the premiums are settled from year 5 to year 32, with an additional $30k in cash to cover the first five years. Not only does this strategy shield you from long-term care risks, but it also equips you with an insurance policy featuring a death benefit for your surviving spouse or estate beneficiaries.
By uniting these tools, you’re not only safeguarding against an untimely demise with life insurance, but you’re also preparing for potential long-term care expenses of up to $1.6 million. Plus, you’re dodging the risk of enduring lengthy life insurance premium payments by offsetting them with a clever annuity move.
Discover how to secure your clients’ financial future with long-term care planning that’s as smart as it is effective.
Raygar Khailany
CEO and Co-Founder
PlanScout
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