Preserve Your Wealth With Long-Term Care Insurance
You’ve done an excellent job of financial planning – you have a large RRSP, optimized your tax exposure, and have set up a tax-efficient transfer of wealth for your heirs with life insurance. What could go wrong?
The wealth that you have worked hard to accumulate may not be there if you do not have long-term care insurance.
Long-term care costs could amount to as much as $45-90, 000 per year.
70% of individuals 65 and over will require some type of long-term care in their lifetime.
A 60-year-old woman has $500,000 of registered assets and $500,000 of non-registered assets. She wants to leave her children and grandchild with as much of her assets as possible when she passes away. However, she has Parkinson’s disease and is no longer able to care for herself. She requires full-time care and her family cannot afford to leave work to care for her. In order to provide her with the care she needs at “the best” facility, living expenses and taxes, she needs to withdraw $6,500 a month from her investment portfolio.
By age 79 she will have used her investments and run out of money to pay for care.
If she had long-term care insurance, the proceeds could have paid for a portion or all of her care costs. Long-term care insurance would have helped her secure the investment assets she wanted to provide to her family while still receiving the care she needed.
Taking into account the likelihood of needing care along with the financial cost of the care, it’s clear that long-term care insurance is an important financial component for individuals 50 years and older. It’s a cost-efficient solution to protect your savings, assets and provides financial security from the price of long-term care.
For more information please contact:
Raymond Pitch CLU LLB
Pitch Financial Group