by John Darer CLU ChFC MSSC CeFT RSP CLTC
Long Term Care is the top concern of 31% of 67 year olds surveyed by MetLife Mature Master Institute, yet less than 25% have addressed this concern with long term care insurance. Nationwide found in a similar survey that most Americans over age 50 have some plan in place for retirement, 57% do not account for long term care in their planning.
Insurance News Net observes an ongoing disconnect between long term care awareness and long term care planning.
Consider that Bank of America Merrill Lynch found in its 2013 employee benefits survey that 79% of the 1,000 employees it surveyed would be willing to give up 5% or more of their salary if it meant having reliable income in their later years. 38% said they would give up 10% or more and 52% of pre-retirees would give up 10% or more.
Addressing retirement without planning for long term care is a long term recipe for a bad time. If you're in your mid 60s and first thinking about long term care insurance you've got a greater expense, which leads to affordability issues and makes for possibly more limited options and possible age-related insurability issues.
When you are saving for retirement, save for long term care by investing in a long term care policy. Start early. Plan ahead to avoid retirement asset erosion and the concomitant effect on ability to meet financial commitments.
Don't forget to ask your parents about their long term care planning. Involve your siblings. It's as much about you and your quality of life as it is about them and theirs.
Settlement proceeds from a personal injury, wrongful death or other type of settlement may be structured to contribute to the annual funding of long term care insurance.