Article
Many Americans have (or are) actively building a financial portfolio for their retirement years. One aspect many have neglected to plug is one very large hole – Long Term Care (LTC).
One may not think that a LTC insurance policy has anyhing to do with an investment portfolio but the two are heavily inter-related. We spend our lives working to build our financial portfolio so that we can maintain a certain lifestyle upon retirement. Then in one (lack of a) heartbeat it can all be spent. The time spent recuperating from a stroke will probably be in a LTC facility, not a hospital.
LTC is one of the nation’s most expensive costs and the national average for a LTC facility is $36,000 per year. In larger cities, this cost can easily be $40,000 - $60,000.
LTC can have a devastating effect on anyone’s financial plan if it is needed. According to the Congressional Subcommittee on Aging, 70-80 percent of nursing home residents deplete their assets within 12 months. Fifty percent of individuals entering a nursing home at age 65 will stay an average of 2 – 12 years. Can your portfolio handle a
$72,000 - $432,000 hit?
People commonly perceive that LTC is only for the elderly, but statistics prove otherwise. In this country, forty percent of LTC patients are under age 64. Even if this perception were true, Medicare benefits for a Skilled Nursing Facility are as follows:
Days 01-20 – 100% coverage of all Medicare approved amounts.
Days 21-100 – $114 per day coinsurance amount (potentially $9,120)
Days 100 and beyond – No benefit
It is clear that any investment portfolio that has not taken into account a LTC policy has a back door that financial disaster can come through at any time.
We can help protect against these devastating financial consequences. Call us at 214-289-3725 to see if we can help protect you.