March 21, 2009
If you're 60 to 70 years old … or have a family member who is … then what you are about to discover could help prevent the complete erosion of your estate.
In fact, it's probably the most important asset you could ever own. Let me explain why.
For over 24 years, I have helped hundreds of individuals understand and implement money saving ideas. From the birth of an innocent newborn to the demise of a crafty senior I've witnessed families in every financial situation imaginable.
As my clients age (and me along with them), I can tell you without hesitation the biggest fear of growing old is losing your ability to remain independent.
Although we are living longer, we are not necessarily living better.
Chronic disease is rampant … and it strikes with a vengeance when you least expect it.
How many people who have experienced a stroke knew it was going to happen to them?
How many anticipated that particular moment when they began to forget things?
The facts speak for themselves. Literally millions of Americans require long term care … either in nursing homes, day care centers, assisted living facilities or in their own homes.
And the cost of providing this care is outrageous with no end in sight.
Now, if you think it will never happen to you … I'm sorry. This article doesn't try to convince anyone about the likelihood of their needing care before they die.
It's meant for those who understand and appreciate the need to arm themselves with protection against the horrific expense of long term care.
In fact, this article is ideal for those who have already looked at traditional types of long term care policies and are trying to determine which type is best for them.
One of the biggest objections to buying a long term care policy is that if the benefit is never needed the premiums paid for the policy will be wasted.
This is somewhat like buying automobile insurance. You have to pay the premium in order to get your car repaired. But what if you never have an accident. Is that considered losing your premium?
Funny isn't it? People hardly question paying for car insurance, but they frequently resist doing so for a long term care policy.
So… what if you could always get your premium back – guaranteed – if you never require any long term care?
And, what if you die before receiving long term care? Wouldn't it be great if your loved ones could recover 100% of your premium expense?
How about this? You actually use up all of your long term care benefit. And then you die. What if your family could still get back 10 percent of your premium.
Now if you know anything about long term care policies you're probably wondering why you haven't heard of this type before.
One reason is because it is non-traditional and not included in the mainstream marketing of long term care policies.
Another is because it takes a large sum of money to buy the policy. $50,000 is typical and it's a one-time single premium, which means you will never get stuck with a premium increase.
It is not uncommon for people between 60 and 70 to have large sums of money stashed away in bank CDs earning low interest. Kind of an emergency fund.
Transferring a portion of this fund into the policy makes sense because the money continues to earn interest. Besides, it usually pays more than the bank … plus, the policy interest is tax deferred.
It's also common for people this age to have old life insurance policies with significant cash value.
Many times it's possible to transfer the cash into the long term care policy and still retain a meaningful death benefit.
And the future long term care benefit could easily be worth over one million dollars.
This policy has a 90 day waiting period before benefits are paid. The length of the benefit can be as short as 4 years or as long as your lifetime. You can also get a 5% compound interest inflation protection rider to help keep up with the rising cost of care.
The name of this policy is MoneyGuard. It is a universal life insurance policy with a long term care rider. The issuing life insurance company is Lincoln Life, a subsidiary of Lincoln Financial Group.
By the way, this policy was initially developed by Penn-Pacific Life many years ago. They have years of experience and an excellent reputation. Lincoln recently bought Penn-Pacific.
Ask your life insurance agent to get you more information about this single premium policy. For the right situation it is absolutely the best guarantee in a long term care policy.
Don Adams is a 24 year veteran financial consultant who has helped hundreds of individuals solve a variety of problems related to money matters. More information is available at http://personal-finance-on-the-net.com