by Marty Levy
The Golden Years – Will They Really Be Golden?
Planning for tomorrow can be a difficult thing. Getting older is no cakewalk either! If there is one thing that is true for every living person on this planet, it is that everyone of us will get older and all eventually die. No one (yet) has ever figured out a way around this fact of life.
One of three paths lie ahead for all of us live a long healthy life, die too soon, or get sick along the way. The dream of living out our “Golden Years” in a state of contentment and happiness is only true for a part of the population. Disease, disability and dementia are real possibilities; planning for uncertainty is critical for everyone.
Americans are living longer. As more and more Americans continue to have personal experiences with loved ones needing care, or actually becoming a relative’s caregiver, the need to have a plan for long-term health care is becoming increasingly apparent.
We downplay the risk of needing care. A lot of momentum is being given to research, medication and anti-aging therapies, all of which will most certainly extend average lifespans across the globe. Plus, the belief that you will be the exception is just one way that Americans fool themselves and procrastinate on creating any type of plan. (A 2021 Gallup poll found less than % of Americans have a will!)
Three quarters of Americans believe that ‘living a healthy lifestyle is the answer’ – but living healthy may simply increase longevity. With longevity comes the perils of aging – and the staggering costs of health care, when we can’t do the things, we used to be able to do.
More than half of Americans say ‘having a spouse provide for their care is their “plan’, yet very few spouses signed up to change diapers, nor could most adequately care for an aging or sick spouse, especially given their own possible health concerns. That burden then falls upon the children – 61% of which say ‘they don’t want to be someone’s caregiver’.
The likelihood of depleting assets, or consuming assets intended for a spouse or legacy is strong, given that 2 of 3 Americans will need some type of long-term health care for at least 90 days during their later years. What’s your plan?
The insurance industry has figured out a really great solution – it’s called Asset Based Long-Term Care. Like a bank CD, except this plan leverages up for healthcare. (Think ”moving money from one pocket to the other”, with the second pocket guaranteeing you can always return the money to the original pocket – but the dollars placed in pocket “B” are bigger than pocket “A”. )
Here’s how it works: position a lump sum in a specialty insurance contract: Quit / things change and you get of your money back. Never use care and get a tax-free death benefit. But, IF you need care, your own money gets leveraged up in value by 4 to 6 to 8 times (depending on age). This strategy guarantees that, no matter what, you never lose! And you don’t have to buy anything.
Have the conversation with the people you love and make sure you have a plan for longevity and preserving your assets – and paying for healthcare. After all, its your life.
With longevity comes the perils of aging – and the staggering costs of health care, when we can’t do the things, we used to be able to do.
The compelling reason to CONVERT your term insurance and when to do it.
Many people purchased term life insurance because it is affordable and efficient
Their expectation is that they will outlive the need for the liquidity as they get older and they accrue like more assets. That makes sense if you’re one of the few who can successfully LIVE and ACCUMULATE -traditionally a conflict for most incomes.
The misnomer is LIFE gets in the way of accumulating….
Lifestyle, educations, weddings, generosity to children, COVID and disruptions in income due to industry or career obsolescence.
Term Insurance is comfortable because at early age as you can buy a lot for a little- and locks in coverage for a fixed horizon.
HERE IS WHAT INSURANCE COMPANIES DON’T TELL YOU.
Failing to lock in life insurance that goes on forever, while you are younger, can preclude you from having life insurance later in life. The costs to acquire life insurance at 65 or 70 are prohibitive – even IF you remain insurable.
Opportunity – The NO RISK life insurance strategy – Get all your money back!
Here’s a clever idea that could change the game for you consider converting a portion of your life insurance, to what we call NoLapseLife, with refund of premiums.
These products guarantee a death benefit for life, also let you turn around at years 20 and 25, and recapture most, or all of your premiums. Have your cake and eat it too.
Imagine at age 70 or 75 years old, making the decision to take back all your premiums, tax-free, hand the premiums to your grandchildren as gifts, or simply recover all your money, or, if your health is impaired and/or you need the death benefit continue the policy for your heirs.
THE REAL SECRET –they don’t want you to convert your policy because it means they will pay a claim at some point…
The IRR on a death benefit to heirs is ALWAYS amazing. Life Insurance is the greatest buy, bargain and investment ever. It’s a certainty, tax free, and absolute. Of course, it’s the most selfless thing you can ever do, but, if you’re trying to achieve the impossible, LIVE and ACCUMULATE, what better way to be able to consume and assure those you love and care about.
What’s the worst that happens, you get all your money back?
It’s seldom people don’t have a need or desire to have final expense and liquidity.
Check into the conversion feature of your term insurance policy to see if this is available to you without any underwriting. Or explore the newest Term policies.
Life insurance- it’s good for you and for your future.
Did You Do The Planning?????
The past couple of years have reminded us what is really important in our lives, how we cherish the people that are most important to us, especially our families.
I’ve learned a lot about accumulating, investing, wealth, business, and mostly, about using insurance wisely…. something many people discount and sometimes even begrudge, but planning that successful people embrace.
I want to take a minute and ask you to consider something you rarely pause to contemplate:
If you, your spouse, or your partner died tomorrow – what would your family do? Have you done the planning? Have you properly insured yourself? ….especially now….. with the recent decline in investment portfolios and with real property assets no longer “flying off the shelf”…? Have you replaced your income?
When was the last time you actually reviewed and contemplated the economic needs of your family, your business, if you died tomorrow?
What plans would you want to have in place if your ability to buy life insurance changed tomorrow?
You and I may have done that years’ ago, or maybe you bought coverage elsewhere. Most people buy a term policy, “set and forget it”.
Maybe a million dollars isn’t what it was years ago. Surely it doesn’t last as it did. In fact, I’ll argue most of you are under insured. By a LOT.
There’s assets, and then there is liquidity. Life insurance brings liquidity to situations at the exact right time. People have lots of assets, but don’t have liquidity. Think lifestyle, mortgages, educations, weddings, retirement accumulations, all purchased with discounted dollars. All for the people you care most about.
Problem with these TERM insurance policies is that they are most likely to expire… way before you do.
If you’re someone who hasn’t revisited your life insurance policies in the last several years. NOW is the right time. Term life insurance rates are in all-time low.
Then, there are those NEW life insurance policies that “spring to life” and can pay for things… like long-term care, while you’re alive!
People are living much longer today too, so you might explore the conversion privileges in your existing term policy to understand how easy it may be to adapt your current policy to one that carries for your life.
Devote a small amount of time and investment to the most important planning you can do for people and things in your life you care most about.
What’s your plan?
Whats Your Plan? (You Gotta Have One!)
Americans are living longer. As more and more Americans continue to have personal experiences with loved ones needing care or actually become a relative’s caregiver, the need to have a prudent plan for long-term health care is becoming increasingly apparent.
Consumers and advisors across the nation have varying perspectives on this issue, and while no one plan or financial strategy is right for all, there is consistent opinion that a need for people to consider health care costs associated with aging and cognitive impairment is critical.
Americans downplay the risk of needing care – it’s part of the culture that is driven by consumption of fast food, sodas, and calories. Given the scope of the epidemic of obesity, heart disease, diabetes, and the impact of smoking as a contributing cause of premature death, it’s ironic that more focus isn’t placed on this issue.
You don’t have to look too far to see someone who has some significant health concerns. It CAN be YOU!
It’s also ironic, because 74% of Americans believe that ‘living a healthy lifestyle is the answer’ – but living healthy may simply increase longevity and that still leaves diseases solely associated with the natural process of aging. IF YOU’RE PLANNING TO LIVE A LONG TIME, YOU NEED A PLAN!
People far underestimate the dollars needed just for retirement, and the retirement savings rate is at an all-time low. Beyond that, most never factor in the potential costs for long-term care. Those costs are staggering: the national hourly rate for At-Home care is $23.00 per hour, exceeded by the staggering costs for a private nursing stay in a nursing home – a whopping $103,000.00 per year2. And, these costs will only continue to rise as Baby Boomers begin to flood the system.
Having “The Conversation”
Only 14% of Americans1 have ‘discussed planning for care or talked with an advisor about how to plan for care. That’s surprising, given that 72%1 ‘worry that they would not be able to provide adequate care if someone in their family needed it.’
More than half of Americans say, ‘having a spouse provide their care is their plan’, yet very few spouses signed up for diaper changes, nor could most adequately care for an aging or sick spouse, given their own possible health concerns. That burden then falls upon the children –
1VerstaResearch, “2017 LTC Marketing and Thought Leadership Research, Findings from Surveys of Advisors and Consumers, “http://newsroom.lfg.com/sites/lfg.newshq.businesswire.com/files/dpc library/file/Lincoln LTC Study Part 1 Final 02.21018.pdf, February 2018.
2LTCG, “2017 Lincoln Financial Group Cost of Care Survey, “https://www.WhatCareCosts.com/lincoln, February 2018.
61% of which say ‘they don’t want to be someone’s caregiver’1 – nor is that option even practical in today’s dual income lifestyles.
Enter Asset-Based Long-Term Care.
The insurance industry has figured out a really great solution – something called Asset Based Long-Term Care plan. With these types of plans, clients use highly specialized insurance contract to people to position assets inside an insurance chassis to leverage for healthcare. No purchase is required.
Think of this as moving money from one pocket to the other – with the second pocket guaranteeing you can always return the money to the original pocket – but the dollars placed in pocket “B” is bigger than pocket “A”. This strategy guarantees that, no matter what, you never lose!
This establishes a comprehensive plan to address the financial challenges of healthcare, so spouses and kids don’t have to liquidate assets at the wrong time, never have to struggle between the need for care and the desire to preserve assets, thus assuring legacies and lifestyles when significant dollars are required for healthcare.
What’s all the fuss about? It’s just about creating a meaningful, loving and respectful way to exit the way we came in, with the same thoughtful love and attention to our healthcare and well-being.
Not having long-term care insurance can be ‘the single biggest devastator ‘of your financial plan!
No one likes to think about needing help doing things, like with dressing, bathing, eating…. the kind of help its very likely someone you know is needing and getting right now. Maybe its one of your parents, uncles and or relatives, who are probably spending tens of thousands of dollars right now.
It’s because about 60% of Americans who turn 65 can expect to use some form of long-term care during their lifetime. That’s 2 out of every 3 of us. Call it one of the biggest problems facing our Nation, and our individual financial security.
Yet few people have a plan to make sure that they don’t have to sell assets at the wrong time, liquidate stock and pay taxes, or worse, to make sure they can pay for this kind of healthcare -something Medicare doesn’t cover!
Not being insured can be the single biggest devastator of every financial plan.
Looking forward, not many people will ever want to willingly move to a nursing home or health care facility – they will want to be at home – wouldn’t you??
Ironically there aren’t a lot of insurance products available to address this need, but here’s a clever twist:
Turn your term life insurance policy into a “cash cow” if you ever needed money for healthcare. Here’s how:
There are a few ‘niche’ insurance companies who sell term life insurance “with a twist”: The policies have living benefits attached to the policies, provisions that will pay for chronic and critical illness – the same triggers as a long-term care policy!
How it works: you get to draw against the death benefit -while you’re alive- to pay for care. Think of it like springing value from a empty oil well. Except you must have the right policy. (It’s not your Fathers’ term life policy”). It’s a new concept only a handful of insurance companies offer, one that isn’t largely marketed.
Would you pay 10% more to get a term life policy that you could draw on during your lifetime? What other asset or instrument can produce this result? (Think “ REFINANCING YOUR TERM POLICY JUST LIKE YOU REFINANCED YOUR HOME”.)
Obviously, you have to qualify, and this approach won’t work for everyone. But, don’t wait till your health changes to address this issue.
Creating a plan for tomorrow, using the newest strategies and products, and advancing your planning could save your family hundreds if not thousands of dollars, and create the life and comfort you spent a lifetime accumulating and protecting.
Turn your term life insurance policy into a
“cash cow” if you ever needed money for healthcare.
