Providence wealth partners long term care strategies
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Transcript of Providence wealth partners long term care strategies
Long-Term Care Protection StrategiesInsurance Matters
Please Call/Email with any questions.
Financial Matters Series
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investmentadvisor. Member FINRA & SIPC. Non-Security products and services are not offered through TFA. Providence Wealth Partners LLC andTFA are not affiliated. We are licensed to sell securities in the following states: CA, CO, IL, IN, MN, OR and TN. This should not beconsidered a solicitation in any other state. Due to various state regulations and registration requirements concerning the dissemination ofinformation regarding investment products and services, we are currently required to limit access of the following pages to individualsresiding in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep may only transact businessin a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from thestates broker/dealer, investment advisor, or BD agent or IA rep requirements, as the case may be; and follow-up, individualizedresponses to consumers in a particular state by broker/dealer, investment advisor, BD agent or IA rep that involve either the effecting orattempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be,shall not be made without first complying with the states broker/dealer, investment advisor, BD agent or IA rep requirements, or pursuantto an applicable state exemption or exclusion.
Please visit us at:www.ProvidenceWealthPartners.com
Aging Population
Sources: U.S. Census Bureau, 2012; U.S. Administration on aging, 2012
Every day for the next 15 years, approximately 10,000 baby-boomers will turn 65.
That’s one person every 8 seconds.
Odds of Needing CareAt least 70% of people over age 65 are expected to need long-term care services at some point during their lives
Source: U.S. Department of Health and Human Services, 2012
Understanding Long-Term Care
• What is it?• How much does it cost?• What are my options?
What is Long-Term Care?
How Much Does Long-Term Care Cost?
National Average:Assisted Living: $39,516Nursing Home: $83,580
HIGHCalifornia:Assisted Living: $43,212Nursing Home: $104,755
New York:Assisted Living: $44,412Nursing Home: $127,750
LOWTexas:Assisted Living: $37,092Nursing Home: $66,795
Illinois:Assisted Living: $41,412Nursing Home: $78,840
CA
TX
IL
NY
Source: U.S. Department of Health and Human Services, 2012
What Are Your Options?
What Are Your Options?
• Complete flexibility • Be prepared for potential expense • Many choose this option by default
Best-Laid Plans
65 70 75 80 85 90 95
$1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
This is a hypothetical example used for illustrative purposes only. It is not representative of any investment or combination of investments.
needs long-term careNeither Spouse
spends 5 years in a nursing home
(ages 65-69)
One Spouse
Initial Balance: $1,000,000
Annual Return: 5%
Annual Withdrawals: $50,000Annual Withdrawals: $50,000Inflation Adjustment: 3%/yrAdditional LTC cost
(first 5 years):$67,000
Inflation Adjustment: 3%/yr
What About Medicare?
• Covers skilled nursing care; does not cover custodial care• Requires a 3-day hospital stay• Covers days 1-10 completely• Copayment due for days 11-100• Limited choice
Source: Centers For Medicare and Medicaid Services, 2012.
What Are Your Options?
Can cover:
Skilled care
Custodial care
In-home assistance
Pros and Cons of a Long-Term Care Policy
• Protect Assets - Retirement funds - Potential tax benefits• Preserve Dignity - Standard of living - Independence - Choice - Not burden family
Pros Cons• Cost of Premiums - Must be comfortable with the cost• Complexity - Wide range of benefits and premiums
Choosing a Long-Term Care Policy
Understand the limitations
and features of the policy
Type of care
Benefit
Waiting period
Renewable
Inflation protection
Waiver of premium
Financial Matters Series
Brandon [email protected]: (812)569-8161P2: (317)660-1618www.ProvidenceWealthPartners.com
Securities and Investment Advisory services offered through Transamerica Financial Advisors, Inc. (TFA), a registered investmentadvisor. Member FINRA & SIPC. Non-Security products and services are not offered through TFA. Providence Wealth Partners LLCand TFA are not affiliated. We are licensed to sell securities in the following states: CA, CO, IL, IN, MN, OR and TN. This should notbe considered a solicitation in any other state. Due to various state regulations and registration requirements concerning thedissemination of information regarding investment products and services, we are currently required to limit access of the followingpages to individuals residing in states where we are currently registered. A broker/dealer, investment advisor, BD agent or IA rep mayonly transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they areexcluded or exempted from the states broker/dealer, investment advisor, or BD agent or IA rep requirements, as the case may be; andfollow-up, individualized responses to consumers in a particular state by broker/dealer, investment advisor, BD agent or IA rep thatinvolve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice forcompensation, as the case may be, shall not be made without first complying with the states broker/dealer, investment advisor, BDagent or IA rep requirements, or pursuant to an applicable state exemption or exclusion.