WHERE TO START
It isn’t easy adjusting to a major change in your lifestyle, or that of a loved one. The fact is, not everyone is prepared for the emotional, or financial effects of transitioning from independence to requiring Long-Term Care assistance. Important questions must be answered to guarantee that funds are available and provide for the best possible quality of life and care.
QUESTIONS TO ASK
Do they have Long-Term Care Insurance?
• Are the benefits sufficient to fully pay for the quality of care they want?
• How long will the benefits last?
What cash or assets have been set aside to pay for assisted living expenses?
• Will resources last as long as care is needed?
• Will their spouse have enough money to maintain their own quality of living?
Are Medicare, Medicaid, or Veteran’s Administration benefits an option to pay for assisted living expenses?
• Do they qualify?
• How do these benefits restrict the choices for care?
• Will they have to give up control of their assets to qualify?
PERSONAL FINANCIAL RESOURCES
Current Assets:
Primary residence value:
$__________
Investment property value:
$__________
Cash, CDs, IRAs, 401ks, Investments: $__________
Life Insurance face amount:
$__________
TOTAL ASSETS: $__________
Current Income:
Guaranteed income is currently $_________/year
(social security, pensions, lifetime annuity)
+ Existing Long-Term Care policy benefit is $_________/year
– Additional expenses are
$_______/year
(insurance, mortgage, other bills)
– The cost of care today is
$_________/year
= Annual surplus or shortfall is currently
(+/-) $_________/year
OPTIONS TO CONSIDER TO PAY FOR CARE
Guaranteed Monthly Income Sources – Social Security, Pensions, Annuities
• Asset Liquidation
• Existing Long-Term Care Insurance Policy
• New Guaranteed Acceptance Long-Term Care Insurance Policy
• Guaranteed Enhanced Income Annuity
• Exchange existing Life Insurance policy for Long-Term Care fund
• Reverse Mortgage
• Government Programs: Veterans Benefits, Medicare, and Medicaid