What If I Never Use My Long-Term Care Benefits?
In this short video, we will address a common question: "What happens if I never use the benefits of my long-term care policy?" I am the owner and founder of Atlas Financial Strategies, specializing in asset-based long-term care, guaranteed retirement income, and asset protection.
Understanding the Odds and Scope of Long-Term Care
Before we delve into the specifics, it's essential to recognize that the odds are stacked against us. According to longtermcare.gov, 70% of Americans will require some form of long-term care in their lifetimes. Long-term care isn't limited to nursing home confinement; these policies encompass a range of care options, from in-home assistance to 24-hour nursing care.
Traditional vs. Asset-Based Long-Term Care Insurance
The main difference between traditional and asset-based long-term care insurance lies in their nature. Asset-based long-term care is an asset with value, whereas traditional long-term care is akin to term insurance, with predefined benefits and monthly premiums.
What if I Never Need the Benefit?
With asset-based long-term care insurance, we can custom-design a strategy based on your preferences. Let's say you choose to park a lump sum of $100,000 inside the policy. If you never use the long-term care benefit, all the money, including any growth, will be passed on to your beneficiaries. It's a way to protect your lump sum from market losses and the likelihood of exhausting it on long-term care expenses.
If you opt for a policy with both a lump sum and a monthly premium, the lump sum will still be passed to your beneficiaries, but the money paid for the monthly premiums will not be refunded. Remember, the primary purpose of these policies is long-term care coverage and risk transfer, not an investment for profit.
Insurance vs. Investment Mentality
While some may feel it's unfair not to get the monthly premiums back, it's essential to differentiate insurance from an investment. Insurance provides protection against catastrophic events, and we transfer risk to the insurance company in exchange for reimbursement if needed. The peace of mind and protection provided outweigh any notion of premiums being refunded.
Maximizing Long-Term Care Benefits
Consider the leverage offered by asset-based long-term care insurance. It can pay you far more for long-term care than you ever put into it, providing a crucial safety net for your future. When compared to insuring against low-risk events like home fires or car accidents, long-term care insurance's benefits outweigh the costs.
Conclusion: Securing Your Financial Future
Long-term care planning is an integral part of financial planning. Making the right choices can ensure your financial security and protect your loved ones from the burden of care expenses. Asset-based long-term care insurance, with its customizable options and potential for passing on unused funds to beneficiaries, stands as a reliable solution in this space.
I encourage you to watch the rest of our video series to gain deeper insights into long-term care planning. And afterward, book a short phone call at AtlasAnnuity.com, so we can design a customized policy tailored to your unique needs and goals.
Thank you for joining me in this discussion, and I'm looking forward to helping you secure your financial future with the right long-term care insurance.
Owner and Founder, Atlas Financial Strategies