Business owners should consider Long Term Care Insurance (LTCI) as an important lynchpin to protecting their business assets and retirement portfolio in the event of a major health crisis.
With the purchase of an LTCI policy you’ll be ensuring that all, or a portion, of your retirement income will not have to be used to pay for nursing home care, or in-home assistance, for example.
In short, the policy’s benefits can help reduce the amounts you need to draw out of your personal accounts, such as investments in 401ks and IRAs.
For example, let’s say that a nursing home is going to cost $8,000 a month, and you are only receiving $2,000 a month from social security, plus another $1,000 from a pension.
The rest of your income to cover the shortfall will have to come from your personal accounts, such as 401Ks, IRAs and Roth IRAs to the tune of $2,000 a month.
Now you’re looking at a $3,000 shortfall to pay the monthly nursing home bill, and the possibility of having to sell business assets to cover the difference.
However, the good news is that the LTCI policy that you took out years back is setup to pay you $3,000 a month, so the shortfall is taken care of.
Another very good benefit from owning a LTCI policy is the option it offers to choose between ‘in-home health assistance’ vs traditional nursing home care.
For sure, long-term care insurance becomes a key component to any insurance package. Contact us to let our agents tailor a policy to your specific needs.