There are reasons people tell you to plan ahead, especially with your finances. You never know when the unexpected could happen and you need to be financially prepared. This goes for your plans after retirement, as well. Many people mistakenly think that their retirement plan will cover all their needs post retirement, but that is unfortunately not the case. With people living much longer than in the past, many outlive their retirement plans. This is a major issue because you may not have the extra cash to pay for your own long-term care. It’s extremely expensive and if you don’t have a hybrid long-term care policy in place, you could find yourself in a financial crisis.
If you go to a nursing home, it can be as expensive as $90,000 for a private room in Illinois. That’s a large sum of money that can run out very quickly. Many people don’t realize how much it can cost, especially if you are there much longer than expected. Alzheimer’s disease has been one reason for much longer stays. It has caused many people to completely deplete their estate.
You can’t predict the future, which is why you want to make sure that you will be taken care of without putting yourself or family in a financial bind. There are so many benefits of having a hybrid long term care insurance policies. You can rest assured knowing you will be taken care of, and that you will still be able to leave something behind to your family.
According to a New York Times article, “Working with financial planners, the Cassells looked at a relatively new option, hybrid long term care insurance policies that package coverage for long-term care with a universal life insurance policy or a fixed annuity. Such products can be tapped for reasons other than long-term care and even passed on to heirs, although the amount available for other uses is reduced if you use the hybrid to pay for long-term care”…“It’s a triple threat,” Dr. Cassell said, “because it could be viewed as a fixed-income investment, cover long-term care and provide a life insurance benefit.” (John F. Wasik, “Hybrid Long-Term Care Policies Provide Cash and Leave Some Behind”)
Many products offer the option to have a rider, which can include accelerated benefits, payments for chronic conditions, money for your beneficiaries etc. This option will cost you more to add to your policy but will offer you many beneficial options, if needed. If care is never needed then your hybrid long term care insurance policy will refund all premium paid with interest in the form of life insurance back to the family tax free.
You definitely want to assess you, your partner, and your families needs before you make any decisions. The first step is knowing your options and becoming informed about hybrid long term care insurance so contact us today for questions and hybrid long term care insurance in Illinois and your company options.
