Phil Cannella Helps You Compare the Costs of Long Term Care
Phil Cannella has often recommended asset based long term care coverage for his retired clients as a way to ensure they will have the available funds they would need for assisted living care. While those types of accounts offer tremendous benefits, they do require a large sum deposit of somewhere around $100,000, and many people feel stressed when considering taking even half of that amount out of your retirement savings to put towards a policy. This is where Phil Cannella advises his clients to take a deep breath and do the math.
Here’s why taking money out of your retirement accounts to fund an asset based long term care plan makes sense:
You’ll save an awful lot in annual premiums alone. The alternative is a traditional long term care policy, and that will cost you $2,000 to $10,000 a year (the average is $3,000 to $4,500), while the premium continues to increase as you age.
Phil Cannella provides this example: A person who is 70 and has a traditional long term care plan paying a reasonable premium of $4,500 per year will have paid $45,000 after ten years for benefits they may have never used. Keep in mind that premiums often go up, so by age 80, that person would be paying even more. After 20 years, they’ll have paid $100,000 or more that they’ll never get back because if they don’t use the insurance, they lose the premium.
With an asset based long term care plan, Phil Cannella argues that you never throw away dollars on something you may never use. These plans provide you not only with coverage should you need it, but also a liquid, safe place for your money that will never go away, continues to grow over time, and comes with premium balloons that get passed onto your heirs when you pass away.