​​According to the U.S. Department of Health and Human Services, long-term care will be a reality for many retirees. The agency estimates that 70 percent of today’s 65-year-olds will need long-term care at some point in their lives.1
 
Long-term care involves extended assistance with basic living activities such as dressing, bathing and eating. It’s usually provided either in the home or in a facility. As you might expect, it can be costly. No matter where the care is provided, it often costs thousands of dollars a month. Considering care is sometimes needed for years, it’s easy to see how it can drain one’s retirement assets.
 
Long-term care insurance can be an effective tool to minimize your out-of-pocket costs. You pay premiums today in exchange for protection in the future. Not all policies are the same, though. There are many different types, each of which has its own set of costs and benefits.
 
Many long-term care policies also offer optional benefits known as riders. You pay an extra fee to get additional coverage for a specific risk. Below are three of the most commonly used riders. Before you buy your policy, consider your needs and which riders may best help you meet your objectives.

Spousal Benefit
 
A spousal benefit can be a valuable option for married couples. Many policies have lifetime coverage caps that are usually expressed as either a benefit dollar amount or a maximum number of months of coverage.
 
The spousal benefit combines the maximums of each spouse into one pool. That way either spouse can use the benefit as needed. Some policies will even increase the maximum coverage to accommodate both people. This benefit can increase the cost of the policy, but it can also provide a valuable level of protection.

Return of Premium
 
One of the biggest concerns many people have about long-term care insurance is the risk that the policy will never be used. Of course, not using the policy means you didn’t need long-term care, so that’s not necessarily a bad thing. However, you may not feel great about paying premiums for years only to never put the policy to use.
 
Some policies offer return-of-premium riders. These riders vary by policy, but they essentially return a portion of your unused coverage to your beneficiaries upon your death. Some companies will package this benefit as a life insurance hybrid. These riders are especially appealing for those who want to leave a legacy. However, the rider can also significantly increase the cost of the policy.

Inflation Protection
 
Inflation is a natural part of the economy, but health care costs sometimes rise faster than other prices. It’s possible that long-term care costs could increase significantly after you buy your policy. By the time you need care, inflation could have eroded the value of your benefit.
 
Inflation protection riders increase your benefit each year to keep up with rising costs. The rider may increase your premium, but it may be worth the extra cost.
 
Ready to find the right long-term care plan for your needs? Let’s talk about it. Contact us today at Stoll and Basler Financial Services. We can help you develop the right strategy for your goals and your budget. Let’s connect soon and start the conversation.
 
1https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18090 – 2018/10/2
 
 

​If you’re a millennial, estate planning is probably the furthest thing from your mind. After all, you’re still young. You’re planning for your career, family, business goals and maybe even your retirement. Death probably seems like a highly unlikely possibility.
 
Thinking about your own passing may not be a pleasant exercise, but it’s too important to ignore. That’s true even if you’re relatively young. While death may not be likely, it does happen. If you or your spouse were to pass away unexpectedly, it could have significant consequences for your family and your financial situation.
 
The good news is you may not need much estate planning to protect your family and other loved ones. A will, life insurance and other basic planning tools could do the trick. Below are a few issues to address in your estate plan:

Child Care
 
Perhaps the biggest objective in any estate plan is to provide for minor children. Specifically, you may want to designate a particular person as guardian for your kids. This is usually done via a will. If you die without a will, the local probate court will make all decisions on your behalf, including who will care for your children. The court may select someone you wouldn’t have chosen yourself.
 
You also may have life insurance that would go to your children upon your death. Many insurers won’t pay a death benefit to a child. Instead, the benefit may go to a court-appointed guardian, whose wishes may not align with your own. Instead, you could set up a trust on behalf of your children and make the insurance payable to the trust. That way the money would be used the way you want.

Financial and Health Care Decisions
 
Estate planning is usually targeted toward issues that could arise after you pass away. But you can also use it to address disability or other ailments that prevent you from managing your own affairs. For instance, you could be involved in a dangerous accident or possibly be diagnosed with a severe illness such as cancer. While these types of events aren’t likely, they do happen.
 
You can use estate planning documents such as a power of attorney or living will to guide decisions on your behalf if you’re ever incapable of making them yourself. These tools could be especially helpful if you’re single or if you have a partner but aren’t married. For instance, your power of attorney can designate a specific individual to make all your financial and health care decisions.

Digital Assets
 
If you’re like many millennials, you have some kind of digital footprint. Maybe you’re active on social media. You almost certainly have email. Maybe you’re a freelancer or entrepreneur and do much of your work online.
 
If you pass away, your family may need to access your accounts. You can create documents that provide them with specific instructions on who should access which accounts and what login information to use. This could help your family gather needed information and ease the process of settling your estate.
 
Ready to create your estate plan? Let’s talk about it. Contact us today at Stoll and Basler Financial Services. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
18086 – 2018/10/1