How to pay $6,000 or more a month for long term care.

As insurance brokers we hear this all the time “I’ll invest the money instead of paying premiums for insurance.”

For every $1,000 of monthly retirement income you want to generate  from your own savings, you will need about $230,000 in assets,  according to the Schwab Center for Investment Research. 

For example, if you want $3,000 a month, or $36,000 a year, you would  need savings of $690,000. That’s a conservative estimate, assuming that you earn 5.2% on your investments and live off the earnings without dipping into the principal.

For $6,000 a month you will need at least $1.3 million. Then there’s living expenses for spouse and family, maybe another $4,000 a month. You will then need over $2 million.

A $3,000 a month benefit policy might cost $1,000-$3,000 a year for the premium, depending on age, health and other benefit options chosen. The $3,000 a month benfit policy would include inflation protection that would increase the monthly benefit to $4,000 a month ($48,000/yr) in ten years.

Where Do You Want Your Estate To Go?
Jonathan Pond, award winning financial planner, says that 90% of estates are spent this way:
1) Nursing Home
2) IRS
3) children
4) grandchildren
5) charity.

Insure or not. If you have $2+ million you can pay for long term care yourself, but then you don’t self-insure health, car, dental, or homeowners insurance.


About Partnership for Long Term Care

Promoting the idea of preventing long term care from financially devastating families by insuring for long term care with state Partnership qualified policies.
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