A good person leaves an inheritance for their children’s children,
but a sinner’s wealth is stored up for the righteous. Proverbs 13:22
Believe it or not, the greatest threat to your portfolio assets (or estate) may not be stock market downturns during your lifetime! While it’s true that stocks, bonds, and mutual funds (historically) have trended upward over the years; it has done it with many up and down gyrations along the way – some small and some big. In short, it can feel like a roller coaster! Conversely, it is also true that the cost of health care has trended upward, as well, through the years; the big difference however is that its cost resembles that of a rocketship heading into the atmosphere never to come down again!
Given that the average long term care claim is between 3.5 – 4 years (without factoring in a 3% inflation rate), that would equate to $51,000 per year. Over a 3.5 – 4 year period, that would equate to approximately $180,000 – $210,000 respectively for Home Health Care!
The cost of a nursing home facility (semi-private or private) for this time period would be staggering for those whose assets are at a median level of $500,000.
Put this upward trajectory together with the nation’s population aging at a faster rate (people are living longer because of biomedical and technology advancements) and you have a recipe for having one’s estate wiped out because of long-term care needs! This is compounded by the fact every day until 2030, 10,000 Baby Boomers will turn 65, and 7 out of 10 of those will require long-term care in their lifetime. Obviously, the cost and drag on ones’ retirement assets could be draining thereby debilitating ones’ estate! (The cost of that care varies based on care setting, geographic location of care as well as level of care required, among other things).
2019 National Annual Median Long-term Care Costs (again, excluding inflation)*:
- Homemaker Services: $51,480
- Home Health Aide: $52,624
- Adult Day Health Care: $48,612
- Assisted Living Facility: $ 4,051
- Semi-Private Nursing Home Room: $90,155
- Private Nursing Home Room: $102,200
The chart below further illustrates the effects of a 3% annual inflation rate from a historical perspective 15 years ago till near present!
In-Home Care Cost*
PROBLEM: WHAT’S A CONSUMER TO DO!?
Of all the individual and group insurance types sold in the marketplace, no product or solution could be more daunting and difficult to understanding than Long-Term Care Insurance! Insurance companies have done such a poor job at teaching and educating consumers on the wisdom; the ins and outs of purchasing Long-term Care Insurance. This is because the insurance industry’s business model stresses sell, sell, sell, with little time devoted to teaching and helping consumers navigate the complexity of the 3 basic types of Long-Term Care Insurance (as well as which is best suited for each unique consumer financially)!
ANSWER: We’re here to teach; not sell!
Let Christian Insurance Services help you navigate the imminent Long-Term Care Insurance debacle.
- If you are between the ages of 45 – 65;
- Have a family history of Alzheimer’s, cognitive dysfunction, or long-term disability;
- Have assets > $250,000, or,Are in a current LTC plan and are clueless to what you have but want to learn;
This could very well be the most important opportunity that could save your current assets and portfolio from medical health care erosion!