A few articles ago we
discussed the idea of addressing Long Term Care needs to address saving your
business and passing your business to a second or even a third generation or
even successfully transferring your business to another third party. Just yesterday I even heard of a business
owner who had a stroke and was unable to work actively and no one knew the ins
and outs of his business. Unfortunately
the business had to be sold at a discount to pay for the excessive costs of an Assisted
Living facility.
There is a new concept I
just read about over the weekend that could help defray the cost related to
Nursing Homes and other related facilities.
It is called The Long Term Care Benefit Plan. Here’s how it works.
Most folks have some
amount of Life Insurance. If you don’t,
investigate this immediately. In this
very new solution, you sell part of your Life Insurance policy. The amount is usually between 30% – 70% of
the total Insurance amount. The insured
or policy owner then converts the dollar amount into a FDIC Insured benefit
amount. It is professionally managed and
this amount can make payments on behalf of individuals receiving care. The care could be in-home, nursing home,
assisted living facilities and even Hospice.
The goal is to extend the
time one remains in private pay, delaying entry into Medicaid. All health conditions are accepted. Some other features to keep in mind are as
follows. The FDIC insured institution is
a nationally regulated Bank & Trust corporation. The payments made for care are tax-free. Lastly, all types of Life Insurance policies
are accepted and the amounts of Life Insurance coverage range from $50,000 to
$1,000,000.
So here’s another reason
for having a substantial block of Life Insurance. If you already have some, it may not be
enough or even the wrong type. Consider this approach for its multitude of
uses.