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Myths & facts of LTC protection
Retirement readiness risks come in all shapes and
sizes, and few looms larger than the potential cost
of long-term care (LTC). Most financial professionals
understand the magnitude of this risk; however,
preparing clients to address LTC
costs often means overcoming
a set of well-entrenched
myths. Understanding
some common myths in
advance and becoming
well-versed in the facts
can change the course
of the conversation.
And most importantly,
it can help create a
stronger retirement
strategy for clients at a
range of income levels.
MYTH: “My health insurance provides all the protection I need for LTC.”
FACT: Health insurance and LTC protection are not interchangeable. Health
insurance helps cover the cost of medical care, while LTC benefits help
pay for other potentially costly services, including help with eating,
bathing and getting dressed — needs that generally grow over time.
MYTH: “I can rely on a government program to take care of me.”
FACT: Government programs are limited by financial resources and
availability. It can be difficult to qualify for government programs,
and each program carries specific rules and requirements for covered
services.
MYTH: “I can save the money I’ll need for LTC.”
FACT: Paying LTC expenses out-of-pocket can wipe out a lifetime of savings.
Today, the average cost for a private nursing home room is $7,698 per
month ($92,376 annually). At that rate, savings of $500,000 would be
depleted in just a few years. And 20 percent of Americans aged 65 or
older will require LTC services for longer than five years.
MYTH: “LTC protection is too expensive.”
FACT: There are many combinations of LTC protection features and payment
options that may work with a range of financial situations. Standalone LTC
policies typically are funded like other insurance policies, with monthly or
annual premiums that may be subject to periodic increases. Asset-based
protection can provide a healthy mix of funding options — including a
single lump-sum premium or options to pay level premiums over a period
of 10 to 20 years.
Long-term care protection
may be their best asset
We can help you provide peace of mind for your clients by
protecting them from the impact of a long-term care event. Our
Care Solutions asset-based long-term care products offer lifetime
benefits, so your clients may be protected as long as they need.
Call 1-866-986-9439 or visit
www.oneamerica.com/nailba
to learn more.
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