Paying for Long Term Care
May 10, 2017
A recent study from Fidelity found that the average couple will have to pay around $130,000 for long term care expenses in their retirement. On top of that, an average of 70% of people age 65 and up will require long term care during their lifetime. We’ll take a small pause here so you can go breath slowly into a paper bag…
Now, some of your clients might say, “I don’t need to worry about that with Medicaid.” That’s a common misconception. Although Medicaid will cover the first 100 days of nursing-home care, it will not cover the majority of other expenses because they are not medical treatments. It also won’t go in effect for your client unless they are below an income threshold determined by their state. Long story short, don’t let your clients rely on Medicaid for long term care expenses.
A more viable option to cover these types of expenses is life insurance that allows clients to access funding from their death benefit. Another method is to purchase a policy that builds cash value over time in order to pay for their care in the future. To discuss the options we can offer your clients, feel free to reach out at 800.290.7226.