Let’s take a transaction of a 53 year old male in 2019:
Perfect health, received a rating of preferred and chose traditional long term care insurance.
This client chose the following:
- 5 Year LTCI plan, it will pay extended care services for 5 years
- 3% Compound escalator
What will it pay out each month?
- 30 Years from now (most likely time to use the policy) It will pay out $9,710 per month and the pool of money to use is $582,000!
- What is the monthly premium for this client? $156.75 Per month!
Once this client is receiving the monthly $$ benefits for this traditional long term care insurance policy…. His monthly premiums….. Stop!
Real Life Stories of People Scott Knows:
Kevin, a divorce attorney, is currently spending $7,000 per month out of his pocket for in home care for his grandmother…. Bless his heart!
Scott’s high school friend Jeff spent $144,000 out of his pocket for dementia care for his dad.
Scott’s dentist spent $6500 per month for 17 months on her dad for in home care for Alzheimer’s care: grand total $110,500.
A friend of the Scott’s family, husband and wife, are spending $20,000 per month for full time in home care for both husband & wife who have dementia.
These are real stories where people self funded out of their pocket for their families long term care, care/ extended care.
We are living longer and do you think you will need some type of extended care when you are older?
Some Factors to Consider:
- As mentioned earlier self funding (no plan in place) will cost you today, $2,000-$12,000 per month
- Will medicare, medicaid, or veterans administration pay for long term care, care/ extended care today?