Income Protection in Retirement
You worked hard for your retirement income and now is the time to enjoy your life.
Preplan for long term care and protect the ones you love and your retirement.
Long term care affects the family and finances
What type of emotional and physical stress will be put on your family?
What retirement funds will be reallocated? Will that alter the retirement we planned?
Long term health care costs will affect over 70% of people over age 65.
​
Only 15% of Americans have pre-planned or saved for long term health care costs.
​
In the Bay Area, the costs of care will range from $70,000-$130,000 per person/year.
Did you know these facts about long term care?
Average Length of Long Term Care
Length of care depends on the individuals overall health and cognitive function.
Men
Women
Alzheimer's Disease
Parkinson's Disease
​
​
​
​
4 years
5 years
8 years
11 years
​
​
​
​
Long Term Care Costs in the Bay Area
​
​
Long term care costs in the Bay Area is
one of the highest in the nation.
​
Inflation increases costs 3-5% per year.
​
2020 costs
​
Home care: $78,000 per year
​
Assisted living facility $59,000 per year
​
Skilled nursing facility $160,000 per year
​
​
​
​
​
​
"The fact remains that most of us are anesthetized to the true cost and
the true value of long term care planning"
Long term care is stand by assistance for daily tasks.
Two conditions warrant long term care help.
​
Physical disability
Advanced age
Stroke
Paralysis
Parkinson's Disease
​
or
​
Cognitive impairment
Dementia
Alzheimer's Disease
​
Long term care options
Paying for long term care
Living Benefits Life Insurance Option 1
Gene 45 has a massive stroke and can't practice
​
His road to recovery is long and needs help at home which is very costly.
​
With his $500,000 permanent life insurance policy, he activates the chronic illness rider and submits a physician's report to the life insurance carrier.
​
Gene advances the entire $500,000 death benefit, and will receive $10,000 per month for 50 months.
​
​​
​
Qualify for the chronic illness rider in the policy by physical disability or cognitive impairment.
​
-
Limited by the amount of death benefit.
​
-
Accelerate the amount of money you need or the whole amount.
​
-
Can be paid as lump sum or monthly.
​
-
No payback
​
Asset Based Life Insurance for Long Term Care Option 3
Physical disability or mental insufficiently qualification
​
Same benefits as traditional long term care PLUS
additional unique features.
​
-
Fixed premiums​
-
One policy covers 2 people​
-
Unlimited lifetime benefits option​
-
Return of premium if long term care not used​
-
Long term care not used: 2nd to pass life insurance benefit ​​
-
Pay premiums with taxable retirement funds
(401k, SEP IRA, IRAs)
​
​
Evan & Joan are planning for long term care.
They elect an Asset Based Life Insurance for long term care plan because:
​
-
they can relocate $200,000 from a 401k for the premium.
​
-
they have $4,700 per month/per person in long term care, lifetime & unlimited benefits.
​
-
in twenty years about $103,000 returned if they cancel their policy.
​
-
if they don't need long term care their kids will recieve $160,000 as tax free life insurance.
Medi-Cal Option 4
California state run medical insurance for low income, disabled individuals, families, or seniors.
​
-
Income must fall below threshold to qualify for Medi-Cal eligibility.
-
Skilled nursing on limited space availability.
-
Limited home care available.
