Group Long Term Care
Long Term Care is One of the Most Popular Benefits Not Widely Offered
Long term care insurance is actually one of the most highly sought after benefits that employees are looking for. yet it’s not offered nearly as much as they would like. The three biggest fears Americans going into retirement, are:
- Fear of living too long,
- Fear of not living long enough;
- Fear of Declining Health Leading to Long Term Care
What is Long Term Care?
When most people they think of long term care, they typically think of a nursing home, a 24 7 facility where they’re basically there to die. However, long term care can also be a time where you know you’re just at home and you have someone come to your house, or you go to an adult day care. Long term care can be devastating if there’s not a plan in place. It can be devastating on entire families, financially and emotionally.
What are My Options?
There are about 3 different outcomes with long term care for an individual:
- You deplete your, savings and wealth and everything, and you run out of assets and you get to a point where you have to go into a state run facility and that’s when you get on Medicaid. Medicaid and the state will force the individual into an asset spend down and they don’t even allow you to make a certain amount of money per month, and you have to get rid of your assets. It’s terrible. and if you ‘re ever hoping to leave any type of wealth to, your children or children’s children. the state will repossess that in order to get their money back from paying for your long term care facility. stay. so just because you’re on Medicaid does not mean that it’s free.
- You have Long Term Care Insurance: Long term care insurance does more than just provide coverage. it also protects, those who are looking to pass down a legacy from having those assets seized by the government to pay for your long term care. and also, you don’t get a choice in where you get to go with long term care when you are with medicaid with a state run program, that is all governments choice. if you don’t like it, tough luck.But with long term care, private insurance, you do have more options, right. going back to what happens to folks in long term care because a lot of folks don’t ever get long term care coverage.
- Families end up just providing the care to save money for everybody. so youhave husbands and wives and even, grandchildren taking turns taking care of their parent or grandparent who is needing care constantly. It’s a toll on everyone’s lives emotionally and as much as we all love each other, we all have our lives to live, and America is generally a society where we like to be very independent. We don’t want to take care of our family members like that, unfortunately.
The family member actually getting the care most likely don’t want to feel like they’re being a burden. It’s a tough spot to be in, to be helpless and needing to have your family there to help you out at all times..
What’s Happening To Long Term Care Insurance?
Long Term care insurance specifically, is becoming less and less of a product that people get just because it’s not something that builds cash value and most business owners don’t offer it, and the cost of coverage is growing astronomically every year. So it’s in that category of coverage like disability insurance. Where we trick ourselves into thinking we won’t need it, so we don’t buy it. Whereas, life insurance, you know you’re going to die. With health insurance, or Medicare, that’s an ongoing thing that’s insurance for living.
Long term care insurance is one of the best bangs for your buck if you ever do have to use it. The cost of long term care is going up exponentially every year, and it’s very difficult to qualify for coverage outside of a company the longer you put off not applying for it. When people look to purchase a plan in retirement, they are shocked to see how high the costs are, and they aren’t getting an income like they used to. So some sort of employer paid long term care insurance is highly sought after in the benefits marketplace and understandably so. It’s not, necessarily the cheapest product out there. but the rising cost of long term care, has many Americans fearful of retirement.
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Qualifying for long term care and paying for it are very difficult to do. especially when there’s no cash value, yet the devastating consequences of not having something like this in place and needing it later on are unfair to everyone involved: family, friends, anybody that, you have a relationship with is going to be affected by it. Iif you’ve built wealth and you want to pass that down to the next generation, and you go on Medicaid in a long term care facility, the government is going to seize your assets.
What Should Employees/Employers Do?
In your forties, even your thirties. if you’re planning super early, plan to have some sort of long term care coverage in place. If you as the employer can offer it to your employees, they would be very grateful. The statistics and the data revealed that long term care insurance is one of the most highly sought after benefits in the workplace, and it’s not offered in as many places as you think.
Another option is to offer a guaranteed-issue group life insurance product that acts as a hybrid long term care insurance product. It’s not full long term care insurance, but it does build cash value, it is also life insurance, and employees will gladly buy it.
To sum it up long term care can be simplified issue or have zero underwriting when you do it through a group typically and it’s typically cheaper. It might not be as customizable as a plan purchased on the individual market, but if employers are able to bring in true long term care insurance as a benefit, employees are going to be very excited about it. The purchase of coverage is a tax write off for the employer, and the benefits are not taxable to the employees in most stares.