Hello, investors. My name is Lynn Reinhodt. I am a securities investment consultant & insurance professional. Over the next few minutes, I would like to focus on an insurance that you may never really have thought about. Long term care insurance. I have recommended LTCi to individuals for the past 10 years and some of my clients are now moving onto claims. In other words, the policy is paying out for their long term care, instead of the policyholder paying their premiums.
I am writing as an advocate to you and everyone who reads this. Most of you who know me personally, know that I am a proponent of Long Term Care Insurance.
I used to tell people that I thought, one day, health care insurance would be mandatory–by-law. Well, that day is here. Now, I am saying the same thing about long term care insurance. Yes, I believe, one day, long term care insurance will be mandatory-by-law. Some of you may laugh, others will cringe, but, I believe, that you will see that within the next 5-10 years.
Over the next 18 years, as the baby boomers move into retirement, many family members will be burdened both financially and emotionally with how to deal with this real need for a loved one.
Long term care insurance &/or planning should be a part of everyone’s retirement plan. The statistics say, 50% of people use their homes for critical illness. What that means to you is, every other home on your street will be used to pay for the cost of critical illness. That critical illness will no longer be due to not having short term medical care after Jan 2014 when the health care reform law takes affect. But, it could still be the statistics for those who are not prepared financially for the cost of long term care.
I do understand that some of you are not able to get long term care insurance due to health reasons now. But, that is even more the reason to plan for how you will manage that need. The first stage of long term care is informal caregiving. That is, family members taking care of family members. That sentence will mean more to you then you will know if you do not have a plan in place.
The best way to know what plan is right for you is to speak with your retirement advisor. If, they do not know anything about it, then seek outside advice. But, do seek advice. Know what you need to do to have a plan in place. Talk to a professional.
If you do not do something about planning for long term care today, you may not like the outcome that you receive when it does happen. Just remember, that health care reform is not a free plan like so many out there assume it will be. No, YOU will pay. The long term care plan that the government has in place now called Medicaid (medicCAL in California) just may turn into another sinking fund that everyone will pay for, Mandatory-by-law. I recommend that you put your plan in place before the government forces you to.
Lynn L. Reinholdt, 1DB Branch Manager in California