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Group Long-Term Care Solutions

Although the benefits of a traditional long-term care policy have been known for quite a few years, many have chosen not to pay for such a policy due to the nature of paying for something they may never use in the future.

 

There were group plans introduced to businesses over 10 years ago that made use of these policies, however, these plans grew out of favor with companies many years ago.

 

Of course, the underlining reason and benefits of these plans still remained, but unfortunately, there were not any options available to employers to help solve the problem for their employees.

 

As an employer I am confident you genuinely care about the well-being of your employees and their families,  Therefore, we would very much like to schedule an introductory Zoom call so that you can learn more about the recent plans which have been introduced.

 

At a minimum they will provide a base foundation plan for your employees (hopefully employer-paid at what many consider to  be a relatively modest cost, or on a totally voluntary basis) to help pay for a LTC event should it ever be needed. Unfortunately, for 70% of us this will prove to be the case.

 

These new plans are guaranteed issue, which very well may be the only coverage some of your employees may be able to get should they have medical issues. They are also portable should they ever leave the company.

 

For your more highly paid employees who desire a more robust plan, they can select additional coverage using simplified underwriting of only 5 questions, which could provide up to $600,000 of LTC coverage, plus the option of some coverage for their spouse which is important as well.

 

However, based on the inflation factor over a number of years, many of your younger employees will want to increase these coverage limits even further. They can select a fully underwritten personal plan using life insurance with a very strong LTC rider for those who can qualify. For those who can’t, they can increase their coverage with an annuity that has an excellent LTC rider providing benefits.

 

The question to consider is, how many years will we require care and how will we pay for it? The average is 4.4 years, but Studies indicate that people aged 65 and older survive an average of four to eight years after a diagnosis of Alzheimer’s, yet some live as long as 20 years.

 

And, I believe most people would prefer for care to be administered in their own home, if possible, unless they would like to move into a “Country Club” like assisted living facility, and have the financial means to do so.

 

In respect to the potential cost, the following chart reflects some examples for the monthly cost of care today, and what it would be in 25 years with a 5% inflation factor.

Source: Genworth Cost of Care Survey 2021. Check your area online or by downloading the full report. https://www.genworth.com/aging-and-you/finances/cost-of-care.htmlhttps://pro.genworth.com/riiproweb/productinfo/pdf/131168.pf

As you know, many people today can’t afford these expenses, which is why family caregiving has become somewhat of a crisis today, and should continue to be for many years into the future as the “Baby Boomers” continue to age.

 

Of course, it wonderful to have a loving family member that has accepted the responsibility to administer this care, but at what cost to them and their employer?

It is estimated there are currently 53 million family caregivers in the United States today.

 

These family members often experience seven painful consequences when trying to be the primary caregiver for a loved one. Those consequences are:

• Emotional
• Mental
• Physical
• Social
• Interpersonal
• Spiritual
• Financial

 

Should you wish, I would be happy to discuss these potential consequences further on our Zoom call as studies show these consequences also have a negative impact on job performance. Of course, this would also have a negative effect on the productivity of the company as well.

 

Fortunately, we can recommend some solutions to a company which will improve the situation for caregivers, and therefore, reduce the negative effect it might have on the company and the employee. Should you wish, we can also discuss some of these caregiving solutions on our call. I look forward to speaking with you.

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