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How much is Long Term Care Insurance?

How much is Long Term Care Insurance
Kevin Wenke

Kevin Wenke

Owner at Decision Tree Financial. CFP. CLU

If you are researching long-term care insurance, you probably already have an idea about how much is long term care insurance.

Since you are reading this article there is a good chance you have gotten quotes for either traditional or hybrid coverage and have seen the high premiums and now are looking for ways to pay for the long-term care insurance, or the services themselves…

You want some coverage, but it’s hard to justify such high insurance premiums for something you hope you never need!  Even if the cost of care is high

You might expect an article with this title to have practical answer that gives sources and ways to access funds through:

  • Tax Incentives
  • Health Savings Accounts
  • Medicare (for a very short period)
  • Reverse Mortgages
  • Savings and investment accounts,
  • Even using Medicaid for people who have no assets to pay for long-term care services

All of these are valid sources for help in funding long term care, but it still feels like an outrageous expense that takes away from your current budget and your future retirement possibilities. 

This conflict between today’s needs vs tomorrows potential need can cause a decision paralysis.  Plus, as you delay making a decision long-term care insurance gets more expensive and harder to get…

But that doesn’t mean that you are out of luck.

Another Way to Think About It

When you think about your cash flow and what you spend money on it can generally be said that there are three areas of spending.

Your household spends money on government costs by paying many different taxes.  You also use money to pay financial institutions and corporations in the form of insurance premiums, investment payments, mortgage payments, fees, etc.  The final third area of your spending goes to supporting your lifestyle.

Taking money away from your lifestyle for any reason is tough, but for many people buying expensive insurance that you hope you never need from the lifestyle budget is out of the question! 

This is because you already feel crushed by all of the other responsibilities like financial fees, insurance premiums and taxes from the various levels of governments.

You hate paying all those expenses because they take away from your lifestyle.  See the “Heavy Weights” graphic where other costs are eating into your lifestyle.

But here’s the cool thing: you may not need to take money away from your lifestyle to get top-notch long-term care coverage. 

When I first say that to people, they often look at me like I am crazy.  This is because they have been conditioned to believe that buying insurance is an expense and they need to shop around for to get the best price.

Demand value from financial institutions and the government will help you buy it

I’m not saying that price isn’t important, but what is really important is THE VALUE.

You may be wondering what I mean by that, doesn’t “price” equal “value?”  The answer is not exactly.

Value is a measure of a benefit versus multiple benefits – including tax incentives, discounts and rebates.

One thing that people don’t realize that they can get multiple benefits, like long-term care coverage just by understanding how financial products work and how they can be used together.

They don’t demand more benefits for their dollar because they haven’t been taught how; or even that it is possible.  For example, there are financial tools that can be combined to:

  • Store Cash to take handle emergencies and take advantage of opportunities,
  • Reduce Taxes and Fees to keep more money in your pocket,
  • Combine with other tools to Reduce Investment Risk without sacrificing return,
  • And, of course, Cover Long-Term Care needs.

My system to help people discover how these products can be used to maximize financial potentials is called the Wealth Performance and Protection System.  With this system I can identify how these tools can best work for you. 

There is a lot to think about when planning for your future care.  To help you through these decisions, you can learn a lot more about preparing and planning for potential long-term care services and even download a free book entitled Long-Term Care Secret.

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