Who Needs It?

Given that the cost of long-term care can quickly deplete your life’s savings, you should seriously consider adding long-term care insurance to your financial plan. Plus, there’s about a 70% chance you’ll need some type of long-term care after age 65.

 

Should you ever require it, a home health aide visit costs about $19 an hour, while full-time nursing home care in a private room, the most expensive type of care, now has a median cost $84,000 a year. In some regions of the country, like the Northeast, the cost may be well above that amount.While financial considerations cannot be understated, long-term care insurance is also about peace of mind and control. Having it ensures you’ll have access to first-rate care when you need it, and that you won’t have to be dependent on others or be a burden to your children. The odds you’ll need long-term care insurance are greater than you might imagine.

Long-term care services are not just for older people: Anyone who’s has been in an accident or suffers from a debilitating illness may also require round the clock care. In fact, 40% of patients receiving long-term care are under age 65. If you can afford to pay for care without significantly impacting your assets, you may not need long-term care insurance. Conversely, if your assets, not including your home, are less than $80,000 if you’re married, or $30,000 if you’re single, you may not be able to afford the premiums. But If you’re somewhere in between, long-term care insurance should be part of the discussion the next time you sit down with an advisor to review your financial plans.

 

1Genworth 2013 Cost of Care Survey, conducted by CareScout

 Why might an independent R.I.A. be a good choice for an investor?

  • Independent RIA’s generally have affiliations with a variety of firms that assist with tax planning, estate planning, money management and more. These affiliations allow them to help their clients with complex financial needs.
  • They generally have affiliations that are free from the conflicts of interest you often see at retail brokers, independent broker dealers, or captive insurance agents.
  • The compensation of some independent registered investment advisors is directly related to growing the assets of their clients, which can benefit the advisor and client alike.

 

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