Will you be able to give the entire inheritance to your heirs?
Or will your resources be depleted from expenses and unforeseen circumstances of your golden years?
Leaving an inheritance to our children or a gift to the causes that are important to us are two of the main reasons we work so hard and put assets aside instead of spending every dollar we earn. It gives us a sense of pride and accomplishment when we plan and prepare for those we hold dear; it is as if we are placing the final touches on our legacy. We take satisfaction in knowing we have prepared for the future.
Unfortunately, there are other factors at work against the assets you have set aside and designated to loved ones. Let's consider some of these events:
Catastrophic illness, accident or failing health can place a devastating drain on your family's finances.
Medical bills can quickly run into the tens of thousands of dollars. Many times certain procedures or prescriptions are not covered by health insurance. In order to receive proper care, not only could you deplete the resources you have designated for your own care, you must then draw from the assets you have set aside for your legacy. Even if you get well, there is no end in sight to the expenses that will creep up to maintain your health.
The average cost of a nursing home in Monroe County, New York, is $96,000 per year. That's about $8,000 per month.
How long can you afford to pay for a nursing home? Is that how you want to spend your kids' inheritance?
SENIORS BEWARE! Long Term Care Insurance. This is where my feathers get a bit ruffled. OK, a lot ruffled.
The LTC Insurance scheme, in my opinion, is obscene.
Seniors are getting violated left and right by smooth talking LTCI salespeople who promise coverage they know full well that their company may not deliver. Let me explain.
Did you know that insurance companies have aggressive legal teams whose only job is to find ways to deny paying out benefits on claims? They have their own attorneys who examine your application, your medical history, your current medical condition, and any other information they can get their hands on to find legal ways to deny your claim. (They can claim any number of promises in their literature, without government regulation, but in the end, they have the last say in what coverage you will actually get.)
How does that affect you? Well, after you have signed up for a LTCI policy based on what your sales rep "promised" you about your coverage, and after you've paid thousands of dollars over a number of years, when it comes time to file your claim for coverage, you may get CLAIM DENIED! Yes, it happens. And it happens so often to so many seniors with such devastating consequences and no recourse that the US House Select Committee has issued severe warnings: SENIORS BEWARE!!!
How much money did you spend? Most reputable insurance companies issue basic policies for a mere $2,500 per year per spouse (better policies cost considerably more). In only five years that's $25,000 per couple. In ten years that's $50,000. And insurance companies are "recommending" that you purchase your LTCI policy while you are younger to get lower rates and avoid medical conditions that may increase your premiums later. That means the earlier you take out a policy, the longer you will pay these premiums. And then they may deny your claim, or only pay partial benefits. But…
What if you never even need a nursing home? There's a 50% chance you will never need long term care. $50,000 for a "what if."
What a tortured way to slowly eat up your resources…
And I'm not done! What about:
Not qualifying for LTCI due to:
Pre-existing medical conditions
Family medical history limitations
Undiagnosed (possible) future health conditions
Not being able to afford LTCI due to:
Outrageous premiums based on existing health conditions
Limited resources to pay for premiums
Losing coverage when financial conditions change and premiums cannot be kept up
Other issues equally problematic
Fortunately, there are simple, affordable alternatives to watching your resources waste away over these insurance gambles and medical situations.
In Preserving Your Estate (or Your Parents' Estate) Part 2 we will look at more threats to your estate and assets, threats that are lurking behind every estate, even if you believe your estate is small and uncomplicated.
Later, we will discuss:
WHAT ABOUT MEDICAID? Can you qualify without losing your estate or spending down everything you have?
Do you have a WILL? Will a WILL protect your estate and guarantee your heirs will receive what you want them to have?
What types of SECURITY do you have concerning your assets? A TRUST? A LIVING TRUST? ASSETS IN YOUR SPOUSE'S NAME? Will these measures really protect your estate and assets? Find out what your lawyer doesn't want you to know.
Please join us at the 15th Annual Health & Fitness Fair on Thursday, October 7, 2004 at the Dome Arena in Henrietta, New York, sponsored by Senator Jim Alesi.
Stop by our ARMOR GROUP booth to sign up for Dinner for Four at the Crescent Beach Hotel on Lake Ontario.
Looking forward to our next visit.
