Planning for retirement is about much more than saving enough money during your working years. It is also about protecting your nest egg and shielding loved ones against unexpected expenses. Here at Pagel & Associates, we offer long-term care insurance and prepaid burial coverage to help keep your finances on track during your golden years.
Long-Term Care Insurance
Long-term care insurance could be one of the most valuable tools for protecting your financial assets in retirement. For seniors with failing health, chronic disease, mental illness, or disability, the cost of healthcare during retirement can be devastating. The cost of professional care can quickly drain a lifetime of savings, even going so far as to bankrupt some seniors. Long-term care insurance helps cover the cost of assistance without depleting your assets.
The Medicare and Medicaid Myth
There is a common misconception that Medicare and Medicaid will take care of long-term care needs during retirement. In actuality, Medicare only pays for short-term ‘skilled care’ – that which is designed to help patients fully recover after surgery or other covered incident. It does not cover the cost of custodial nursing home or at-home care when necessary for a chronic condition.
Medicaid can offer some reprieve for long-term care needs, but it is designed to be a safety net when all other resources are depleted. Since the Medicaid program provides benefits based on financial need, you will first be required to spend down your personal savings and assets before qualifying for Medicaid-assisted long-term care.
A Partnership-qualified policy is a unique agreement between an insurance company and the state government. Those who voluntarily participate in these partnerships are allowed to shield a pre-determined amount of their assets while qualifying for Medicaid assistance. They are not required to ‘spend down’ as much of their savings and assets in order to receive Medicaid coverage for long-term care. For every dollar of coverage purchased in a Partnership-qualified program, one additional dollar can be retained in order to qualify for Medicaid assistance. This is an effective way of continuing to protect a spouse’s needs in retirement or ensuring you have assets to pass on to heirs eventually.
Are You Prepared?
Over time, the risk of requiring full-time nursing home care or assistance with daily activities, such as bathing and dressing, tends to rise. Though it may seem unimaginable for most, nearly 70 percent of all seniors who reach age 65 will eventually need long-term care at some point in their lives. Are you financially prepared for the cost of long-term care? Do you have the assurance that you could afford access to the care you might need in the future? We here at Pagel & Associates would be happy to assist you in establishing a long-term care plan that protects your financial interests in retirement.
One of the most generous gifts you can leave for your family is coverage of your final expenses. Pre-funding a funeral and burial helps to remove financial burdens during a time when loved ones may be grieving your loss. It also gives you peace of mind knowing that your funeral expenses are already taken care of.
A prepaid burial plan from Pagel & Associates is more than a savings account – it’s an investment. Your death benefit will grow tax-free over time, eliminating the headache of 1099 reporting to the IRS. Also, the policy may be considered an exempt asset for purposes of qualifying for Medicaid or Social Security Income (SSI). When the time comes for your loved ones to make a claim against the policy, they will have the flexibility to designate the funds wherever they are needed most, whether for the funeral, burial, medical bills, or estate debts.
At Pagel & Associates, we offer a plan that fits every need and budget. From single-pay policies to plans that allow for multiple payments over time, contact one of our agents to learn how advanced planning with a prepaid burial plan can cover your final expenses and preserve your assets for your beneficiaries.