Case Studies
Scenario #1
John and Ellen have 3 children and 7 grandchildren. They own their own home and have managed to accumulate nearly $450,000. At the age of 81, John has a stroke. While recovering, he falls and breaks a hip. A few months later, his short term memory begins to fail. Four years after his stroke he passes away. During that time, John and Ellen spent $286,000 for long term care in their home and in a facility. The downward spiral of John’s health is not uncommon. Like it or not, there is not much the family could have done about this series of events, with the exception of planning ahead with long term care insurance.
Scenario #2
John and Ellen purchase a long term care insurance policy with inflation protection when John is 59 and Ellen is 57. If nothing else changes from the first scenario, they have utilized a small portion of their savings to protect everything else they have. With long term care insurance, their policy provides for home care, assisted living, or residential care where they want John to be. In short, they have options. The bulk of their savings has been preserved and Ellen has enough money to live comfortably after her husband’s death. In addition to financial protection, she and her family have more choices and peace of mind.
To illustrate how long term care insurance can protect your family, click here.