LTC insurance as a risk management tool.

1. 12 reasons to Leverage your dollars in 2012 with LTC insurance
1. Pennies on the dollar leverage
2. Efficient use of money – use other people’s money to protect yours
3. Forced to sell assets may have significant consequences at an inopportune time
4. Tax favorable treatment from State and Federal Governments
5. Protect assets - MN Partnership Plan, dollar for dollar Medicaid asset-disregard
6. Compounded growth of benefits to stay constant with the future cost of care
7. Retain income for household expenses and retirement goals of caregiver
8. A contingency pool of funds allows investment portfolio principal and interest
uninterrupted growth
9. Reduce capital gains tax from sell-off of assets due to untimely chronic illness
10. Protects the inheritance, legacy, or education funds for future generations
11. Liquidity - assures funds are available immediately or as needed
12. Longevity – added assurance and peace of mind you won’t outlive your money
The Essence of Long Term Care Insurance
The need to investigate Long Term Care insurance as a risk management tool is
essential for all individuals that expect to live a long life due to advancements in
medicine, coupled with the desire to minimize the caregiving burden to love-ones.
It is the preparation and planning that is most important, not the probability of needing
care.
The question is not, “What if I never need it?” Only God knows your future.
The questions are: If you do need it, how do you plan to pay for it? Who is going
to be the caregiver?Where do you want care delivered? Who’s in control?
You see the essence of risk management is to assess the risk, plan for all possible
outcomes, and minimize the consequences. We manage risk by transferring the risk to
a third party, diluting the impact, and mitigating the losses.
LTC insurance safeguards assets and allows the income-stream to pay for retirement
without invading investment principle or derailing the financial portfolio from its intended
purpose. Insurance allows the caregiver to maintain the standard of living and
minimizes the financial stress of caregiving. It’s what families do to provide loved-ones
with peace-of-mind and financial security.