Hey, everybody, it's Ronnie here doing
the next series in our Mythbuster series,
I wanted to talk a little bit about
long-term care. So the myth we're testing
today is, is long-term care too expensive?
Long-term care is super super
important most people understand
inherently how important long-term care
is and as more people are heading into
those ages where long-term care is a
real possibility, it's important to
really dissect this and understand it
before we make blanket statements like,
long-term care is too expensive. In some
ways it can be but it's first important
to understand long-term care. Long-term
care can be a complex vehicle but in its simplified terms there's really a
couple of things that you look at, the first
is, how long do I want to be taken care
of?
The average long-term care stay is is
three years, so most policies are built
around a 3-year care need, a lot of
long-term care will also provide
benefits for in-home care as well, which
is important to a lot of people to be
able to stay in their home when they're
taken care of. The next thing is, how much
coverage do I need? Long-term care is
covered on a daily benefit, the average
daily benefit in the Detroit area is
somewhere between two and three hundred
dollars a day. So, it can get very very
expensive, so, it's first figuring out how
much a day do I want to be covered and
then finally the last piece is, what type
of care that you want and those are
pieces that we really look at. So, the
importance in understanding long-term
care is you don't have to buy all the
insurance, you can supplement. So, really
in figuring out cost and working with a
good financial adviser that knows and
understands long term care like us at
Financial Strategies Group, we will help
you design a strategy that fits your
budget but something is always better
than nothing in any scenario, especially
long-term care. In addition and most
importantly recently the industry the
insurance industry has really provided a
lot of really cool what we call hybrid
techniques, because one of the concerns
with long-term care is not only is it
too expensive but if we use it do we
lose it? It's really important to
know that there are strategies out there
like life insurance and annuities that
do provide long term care benefits so
you see so you still get all the
benefits of things like
term care and annuities for income
purposes and death benefit purposes but
they also build in really nice riders
that give you a benefit for long term
care, if that issue does occur. So
the importance is long term care is
something that is very important and you
need to work with somebody that can show
you all the different options and help
you budget it out so that you can have
something even if it's in supplement. So
till next time look forward to seeing you.
