Dear friends, I hope this message finds you well.

An effective approach to prepare for the future.

“We know what we are but know not what we may be.”

1. Shakespeare.

Longevity has become a blessing to many American families. Thanks to healthy habits, modern hygiene, and science, we are living longer than ever. It is not uncommon to hear that some of our parents or grandparents are living to be 90 or even 100. We have the chance to enjoy our loved ones on more birthdays, trips, and celebrations.

But with longevity, we also have a higher chance of having health care events along the way, including what is known as long-term care.

Individuals need long-term care when a chronic condition, trauma, or illness limits their ability to carry out basic self-care tasks, such as bathing, dressing, or eating. The care needed to perform these activities is mostly NOT covered by health insurance. These events can last any number of years, and they can be very challenging, emotionally and financially.

Despite the strong likelihood that a person will require some form of long-term care, a sizable percentage of consumers are under the impression that they won’t require this care. Recent research indicates that just 16 percent of Americans forty and older report doing “a great deal” of planning for their long-term care needs; 65 percent report doing very little such planning or no planning at all.

The unknown cost of health care can be a significant risk to any retirement plan. Unlike most spending in retirement, health care spending increases with age on average and is far more volatile. Almost 70% of people turning 65 today will eventually need some form of long-term care in their lifetimes.

With traditional health-based long-term care insurance, you pay insurance premiums to help protect yourself if you require long-term care. As history shows, the premiums will likely increase over time, and if you never need it, this form of long-term care insurance offers no benefit, and your premiums are lost.

A more efficient generation of protection is finally becoming widely known. It’s called Asset-Based Long-Term Care insurance. Someone very smart realized that the problem could be solved by letting the LTC benefits arise from either a life insurance policy or an annuity. Because the data and actuarial science are abundant in these products, this was able to bring stability to the equation.

This new approach allows the insured to cover long-term care expenditures for a chosen number of years and even allows the insured to choose lifetime benefits. The premiums are guaranteed never to increase, and in case the care is not needed, the assets are transferred to the insured’s beneficiaries. On top of this, current legislation allows you to receive these LTC benefits, tax-free.

Having the right long-term care protection can also help reduce the emotional challenges that will arise from a long-term care event. Family dynamics can be rattled.

Make an appointment, and I will be happy to discuss this subject with you.

Thank you for reading.

Roberto Medina