UlTImATE SUccESS GUIdEIf you look at the various riders available for your life insurance you
will see that these riders are very affordable and are guaranteed, unlike
stand-alone policies. Everyone knows somebody that has had to pay
for a long-term care situation. Most people have experienced this with
someone in their own family. This cost can literally wipe you out. It
breaks my heart to see someone that has skimped and saved their whole
life to build up a nest egg to leave to their heirs only to see it completely
wiped out in a very short amount of time due to a long-term care issue.
I am not only talking about nursing home stays here. I am talking about
assisted living, home health care and nursing home stays.
When I discuss this risk with clients, they are all very aware of the cost
and the destruction that this can cause to their finances. Many times one
spouse will need the coverage and it will wipe out all of their savings -
leaving the surviving spouse destitute. So much for the “golden years.”
The objections that our ciients have to purchasing stand-alone coverage
are that the cost is too high, the premium is not guaranteed and if they
don’t use it they have wasted their money. I do agree with this assess-
ment. But if you buy a rider on your life policy, the premium is guaran-
teed, the cost is not prohibitive, and if you never use the coverage your
heirs will get the death benefit.
I strongly recommend that anyone buying permanent coverage today
look at these fantastic riders. The good ones pay for all levels of care. In
other words no matter what level of care you need, it will cover it.
The three levels are home health care, assisted living and nursing home.
I had a client the other day say “the government will pay for it.” I told
them that is true. However, the downside to that is you have to be desti-
tute before that takes place, and they only pay in a nursing home of their
choice not yours, not to mention the problem of the surviving spouse
and his or her needs. And of course, the heirs would receive nothing
because it was all eaten up by the cost of care.
No more than these riders cost, they should seriously be considered.
Make sure you buy a policy that is an “indemnity” policy. In other
words, when you qualify for the benefit (this is usually triggered by not
being able to perform 2 of the 6 activities of daily living), the benefit
is paid directly to you. You do not want to buy one where the benefit
is paid to the facility. Also, look for one that has a waiver of premium