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Paying for Long-Term Care When You’re the ‘One’

The one incident that could change your entire future.

Whenever you read about important topics like long-term care, health care or retirement, you’re likely inundated with facts and numbers. The cost of care, the likelihood you’ll experience various diseases, how much you’ll need in retirement to live and pay for care — these are some facts you typically come across.

long-term care insurance- is it right for you?
How will you pay for long-term care?

But how much do these statistics matter? After all, you are not a number. You are a not a faceless fact, but a person with a full, complex life.

So when you’re learning about important subjects, it’s important to evaluate the truth behind the numbers. Below, you can take a closer look at key data and its relevance to you.

Insurance: Protecting your assets, protecting your future

Think for a moment about the most valuable things you own: your home, automobiles, other vehicles, jewelry. Each has monetary or sentimental value — or both — which you protect by purchasing insurance. If anything happens to an item, the insurance company helps you recover from the loss. With insurance, you limit your exposure.

While you don’t necessarily love paying premiums, you’re aware of common risks like these:

  • 1 in 335 homes catch fire every year, according to the National Fire Protection Association.¹
  • 1 in 52 cars are in an accident per year, according to the National Highway Traffic Safety Administration.²

In each statistic, the “one” is always a real person — a busy working mom whose car is totaled at the intersection near home, or the retired owner of a suburban home that’s nearly destroyed by lightning. When accidents happen, the “one” is grateful for insurance to help minimize losses.

Now consider another risk:

  • 1 in 1.4 people older than 65 will need long-term care, according to the U.S. Department of Health and Human Services.³

Stated another way, 70 percent of all older adults will need care — at an average annual cost, per the HHS, of $83,580 in a nursing home.

Where the money is

Odds are, you’ll be among the 70 percent of adults who need long-term care. If you are the “one,” how will you pay the cost? You may think you can cover the bill out of your savings, or you assume government programs cover your expenses. Maybe you’ll rely on family to help.

Or will you risk your future security by hoping you’ll be in the slim minority?

Fortunately, you have options that can help you protect and secure your future in the same way you protect your other assets.

Traditional Premium-based long-term insurance is the type of coverage that most of us are aware of. You make a monthly or annual premium payment to an insurance company. You are purchasing a monthly benefit that you will be able to use to pay for your care, if you need it. Typically, your benefits can pay for care in an assisted-living facility or in a nursing home.

Asset-based long-term care protection is the newest option available. With this type of long-term care protection, benefits can pay for care at home, in an assisted-living facility or in a nursing home. Some Asset-based long-term care policies can protect the individual and spouse; some even offer money back if the policy is canceled.

What is your future worth?

Your future has great value to you and those who love you. Why not take care of it the way you protect your other assets? Asset-based long-term care can help you protect your retirement and secure your future.

Cory Smith and Duane Bolinger are Financial Advisors with Allegis Financial Partners. To learn more or ask questions about the content of this article, contact Cory Smith or Duane Bolinger by filling out the form below.

  1. Ahrens, Marty. National Fire Protection Association. “Home Structure Fires.” Sept.2015
  2. U.S Department of Transportation National Highway Traffic Safety Administration. “Quick Facts 2014.” March 2016
  3. U.S Department of Health and Human services. 2016, June 24. “Who needs care?” http://longtermcare.gov/the-basics/who-needs-care/.

This is not tax or legal advice.  Registered Representative and Investment Advisor Representative of and securities offered through OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC.  Allegis Financial Partners is not an affiliate of OneAmerica Securities or AUL and is not a broker dealer or Registered Investment Advisor.

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