As the population ages, we keep hearing discussions about the effects of mass retirement expected within the next 10 to 15 years. Succession planning is a vital tool that baby boomers must learn about and consider in order to allow for a smooth transition between the generations (be it from you to a family member or another person). I will leave Succession planning for another time, for now, I want to explain a type of insurance that has appealing qualities to the 3 generations with us today – Long Term Care Insurance.
Long Term Care insurance sounds like coverage that should be given to old people. Well, it can be, however it is also for young ones who want to protect themselves from the possibility that they can no longer take care of themselves on their own, but wish to continue their lifestyle as much as possible.
Regardless if you have a financial plan or not; a long term care plan makes sense for all. Once you are diagnosed, you get a guaranteed monthly payment if you:
a) Become unable to perform 2 of the following 6 activities of daily living without the help of another person: bathing, dressing, toileting (going potty), transferring (shifting from one place to another), continence (your ability to do your business in the right places), or eating.
b) Are suffering from a cognitive impairment endangering your health or safety – like Alzheimer’s.
This type of policy gives you the financial freedom to be able to pay for the services that you want for yourself. I am a male age 31 and it can cost me as little as $55 a month for 20 years (with return of premium options too!) Whether you are starting your career or winding it down, long term care insurance is a silent partner that you hope you never have to use, but is there in case you do.