Expert Report: Asset-Based Long-Term Care

Expert Report: Asset-Based Long-Term Care

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Good News, Baby Boomers are living longer than ever before and are placing a priority on being happy and healthy.

Unfortunately, many lack the vital part of health care planning, Long term care.  Sobering statistics from the Government show that close to 70 percent of all Baby boomers will use a long-term care facility for an average of 3 years at a cost of over $300,000.   

Not planning for long-term care is denying yourself a comfortable transition in the final stages of your life and expenses that will impoverish most estates. 

Fortunately, in recent years programs have become available where long-term care coverage can be obtained without ever paying annual premiums. Therefore, if you didn’t use it, you don’t lose it. It’s called asset-based long-term care. 

Here’s how it works, by leveraging an asset, such as a savings account, or an investment account, when long-term care is needed the asset chosen to be leveraged will balloon to more than three times the original asset value.  For example: Husband and Wife at 65 years of age, transfers $100,000 of one of their investment accounts into an Asset Based Long-Term Care contract. Upon receipt of the transfer that $100,000 immediately becomes, from day one, $460,000 dollars of long-term care benefit for both husband and wife when needed.  For Individuals the $100,000 would balloon to $550,000.  

Perhaps, the most attractive part of asset-based care is receiving the care in the comforts of your own home. This is what experts call “aging in place” – staying in the comfort of your own home and assuring yourself a comfortable transition in the final stages of your life and not to have the worry of impoverishing your estate. 

However, should a need not arise for asset care the beneficiaries would receive the remaining contract value.

These types of contracts are more liberal with health conditions, and age is a determining factor for benefits. 

Being proactive is important here, by taking these steps now, not only will it be less expensive at your current age, but also will protect your surviving spouse, and the estate that took you a lifetime to accrue as well.