Disability & Long Term Care Solutions

Income and asset protection are important components of a sound retirement strategy. Successfully navigating disability and long-term care planning issues, both pre- and post- retirement, can create the balance needed in a portfolio to ensure stability, growth, and protection of assets for the long term.

Disability Solutions

Your ability to work and earn a living for yourself and your family may be considered your most valuable asset. What would you do if you lost your earning power? Who would pay your bills, fund your child’s education, or contribute to your retirement plans? It is natural to insure other important assets such as your home and car, so why not your future income stream?

Employers may offer short and long-term disability insurance for their employees as part of a benefit plan. Be sure to evaluate whether it would meet your future income needs, as some may have long elimination periods before your benefit kicks in. Employers may also cap your benefit, leaving a big gap in coverage as your income increases. Be aware of whether the benefits would be considered taxable to you at time of claim, which could widen the gap in your after-tax income needs. Would it be beneficial to overlay extra disability income coverage to minimize the gap and give you added peace of mind?

Do not leave it up to guesswork. Let us help you identify your needs and better understand your options.

Long-Term Care Solutions

Long-term care is usually defined as a chronic condition for which an individual requires assistance with his or her usual activities of daily living (ADLs). ADLs are commonly defined as eating, dressing, bathing, toileting, maintaining continence, and transferring from bed to chair. When an individual needs physical assistance or verbal reminders to perform his or her ADLs, they are generally classified as needing long-term care, whether they need the assistance occasionally or full-time.

Diagnostic, therapeutic, preventive, and rehabilitative services all have their place in a comprehensive long-term care program. The primary focus of long-term care, however, is on the personal care and support that will preserve an individual’s lifestyle, daily independence, and dignity.

It can be difficult to plan for extended care needs due to multiple factors that can influence the decision making process, including:

• Ambivalence about long-term living arrangements as physical capabilities decline
• Inability or unwillingness of family members to provide periodic or ongoing support when the time comes
• Misinformation about long-term care options or services available through health programs, Medicare, etc.
• Difficulty in juggling financial and family priorities when planning for extended care

The financial implications of a disability, chronic disease, or other debilitating condition are often under estimated. Along with health care costs in general, these costs are expected to grow exponentially in the coming years. As most health insurance will not pay for the majority of costs associated with an extended period of illness or injury, disability and long-term care insurance offer solutions with tax-free benefits that are also aimed at protecting valuable assets that would otherwise be severely reduced or lost entirely.

Could an insurance policy help offset this risk to your wealth and late-in-life dignities?

Let us help you evaluate your options.