The 2 New Innovative Ways to Pay for Long-term Care in Retirement

(don’t forget to checkout the video of this post too)

A long-term care event is one thing that can wipe out your retirement faster than anything else.

In fact, the cost of needing some form of long-term care can easily exceed $100,000 per year.

Imagine what your retirement would look like needing an additional $100,000 per year of retirement income!?

Very few retirement plans can support an expense of that magnitude.

And 70% of retirees will need some form of care at some point during their retirement years (so it’s not low-risk event for most).

Long-term care insurance used to be incredibly expensive and there was no guarantee that you would even use it…

People didn’t like that.

It was pretty much a use-it-or-lose-it proposition.

But now, two different options have emerged that I think are MUCH better alternatives.

✅ The first is a hybrid, life insurance contract that is indexed to the stock market (with no risk of loss).

So not only can your policy grow over time with market performance, you can also take the money you put into the contract back out if you need to (so you’re not risking any money).

You also immediately have a tax-free death benefit available on day 1.

So if you die, somebody you love gets a tax-free death benefit that was significantly more than you put into the contract. 👏

The insurance amount (and cash value) will continue to grow at a guaranteed rate, but like I mentioned earlier, if the market outperforms the insurance company’s guarantee, you will be credited the higher amount.

As your insurance amount grows, your account value for long-term care also grows, since you are able to access your death benefit early for long-term care…😏

What’s nice is that no matter what, the money you put into the contract is either…

✅ Used to pay for long-term care

✅ Transferred to a loved one tax-free, or

✅ Taken back out of the policy if needed

Not much downside, right⁉️

Oh, and no underwriting either. ❌

So no medical exams and no getting declined for long-term care and a guarantee that you or someone you will love will get a significant benefit out of a contract like this.

✅ The second innovative way to pay for long-term care is with an amplification contract.

This is more like traditional long-term care insurance but with simplified underwriting.

The way a contract like this works is that the insurance company asks you 5 basic pass or fail questions, and if you pass, they will double the amount of your contract.

So $100,000 instantly becomes $200,000 for long-term care.

They then ask you 5 more pass or fail questions and if you pass those, they will triple your benefit for long-term care…😏

So $100,000 becomes $300,000 for long-term care

These also have a residual value that transfers to your loved ones tax-free if you don’t end up needing long-term care.

This is a great way to cover your risk of running out of money in retirement due to a long-term care event, while also leaving some money to your children, grandchildren, or anyone else you care about.

Long-term care might not be the sexiest aspect of retirement planning but it’s a very important topic to address to ensure your money lasts as long as you do in retirement.

Let’s chat 💬😎