Individual
Long-Term Care
And The
Time Value Of
Money
Because money embodies security, it is only natural to believe that savings is the best approach to meet future needs. BUT IS IT REALLY?
If you invest $100 monthly for 20 years and earn
seven percent interest you will have $52,397 at the end of 20 years assuming no
taxes were taken out.
For a 65 year old in good health, the savings method
will purchase approximately 128 days of nursing home care in the twentieth year
at what could be triple the current cost, or $390 a day.
Supposing the same person had purchased a long-term
care insurance contract that had a benefit of $130 a day, with a 90 day
elimination period, 80% home health care, and a 5% compounding inflation with a
monthly premium of $95.29 they would have purchased an immediate benefit pool of $142,350 or three years of facility
care. In the 20th year the contract
would have been worth an impressive $359,707 tax-free dollars.
After review of the investment dollars allowed for long-term care, the insurance contract becomes the only sensible solution for those genuinely interested in helping to guarantee affordable services now and in the future.
For more information on long-term care insurance or
a personalized proposal, call
Robyn Hamlin at (314) 438-0222.