What are my options to protect my assets on a possible Long Term Care Illness?

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This the #2 concern we all have as we get older.   2nd to the number #1 concern of ‘running out of money’.

There are a few ways to protect assets, and these depend on each individual or couple  as to which is the best way for them, so don’t take this as my advice on what you should do, as this take a bit more planning and discussions, but here are your options:

  • Buy an insurance policy that is called Long Term Care Insurance. You pay premiums for this coverage, just like you pay premiums for your car insurance.   You never get those premiums back, but if something should happen the insurance company pays the claim/or benefit so that you can protect your life savings and move the risk from you to an Insurance Company.
  • Buy a Life Insurance Policy with a Death Benefit – TAX FREE, that also has a Long-Term Care rider/benefit built into the policy. If you get sick or injured, you get a monthly benefit TAX FREE from the life insurance policy to cover long term care costs.   Now you have to be insurable and premiums are customizable to the benefit we want or can afford, but the beauty of this type of coverage is if you are lucky enough to never get sick, then the Death Benefit passes, tax free to your named beneficiaries.
  • Set-up an Irrevocable Trust. Now this become a bit more complicated, requires legal documents and meetings with an Attorney.   We have several on hand in our office.   The one critical thing to understand is that when you put assets into an irrevocable trust, you lose all control of the asset/investment.    Again this is a discussion to have and if this is right for you there are plenty of things to consider to see if this is a good fit, such as age, health, liquidity of investments to name a few.

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