Providing for Long-Term Care

Providing for Long-Term Care

Purchasing long-term care insurance makes sense if you want to protect yourself and your loved ones from having to make difficult financial choices in the future. Although the industry oftentimes criticizes long-term care insurance as a waste of money if it’s never used, the benefits undoubtedly outweigh the costs if the need suddenly arises.

There are alternatives today that can offer long-term care protection while providing other benefits as well. For individuals who might maintain cash reserves for their own long-term care, these products are especially attractive as they can greatly enhance the benefits they would receive. Once the premiums are paid, these products typically offer long-term care benefits, or a money-back guarantee after premiums are fully paid, or a tax-free death benefit to surviving heirs if the benefits are not used up. These products can be a good substitute to holding funds aside in an interest-bearing account or bonds that might be liquidated to provide for long-term care.

Consult with your financial advisor before purchasing long-term care insurance to learn how to best incorporate it into your financial strategy. Be sure to explore the various types of long-term care insurance. You may be surprised how effectively the right long-term care product can fit with your financial and life goals.

David Menashe is a Senior Vice President and Wealth Management Advisor, and Bruce Morley is a First Vice President and Wealth Management Advisor, for Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, and a wholly owned subsidiary of Bank of America Corporation. Investment products are not FDIC insured, are not bank guaranteed, and may lose value. (858.381.8113)

Photo by Andy Templeton