Don’t Let Long-Term Care Disrupt Your Retirement

Don’t Let Long-Term Care Disrupt Your Retirement

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Like most people planning for retirement, you want to be sure your living expenses are covered under any possible scenario. Also, like most people, you want to help protect the nest egg you worked all of your life to build.

Unfortunately, there are situations that can throw a wrench into your plans. One of those situations is the need for long-term nursing care. Just one serious illness or accident could leave you needing long-term care, either temporarily or permanently. And with the high cost of nursing care these days, you could be forced to dip more deeply into your retirement savings—putting you at risk of outliving your retirement income.

Long-term care insurance is one option, but premiums can and do increase each year. Luckily, there is a second option: adding a long-term care rider to your life insurance policy. This rider allows you to receive part of your life insurance death benefit while you’re still alive to pay for the cost of long-term care. This way, you don’t have to deplete your retirement income earlier than expected, so you’re less likely to outlive your savings.

A long-term care rider works like this:

  • When you purchase your life insurance policy, you select a coverage amount for long-term care
  • Your premiums remain consistent for the duration of the policy
  • If you need to claim your long-term care benefits, that money is paid out free of income tax (assuming certain requirements are met)
  • If you never need long-term care, the money remains part of your life insurance death benefits paid to your heirs

Your needs are unique to your situation, so if you have questions or need further information, just contact your insurance professional. Together, they can help you to assess your needs and resources, decide upon an amount of coverage, and review the policy to make sure you understand how your benefits will be paid to you.

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14244 – 2015/3/10