Asset Based Long Term Care & Coverage for Food and Medicine

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An Insurance Policy Made to Order for the Sandwich Generation

As per one report, about 70 percent Americans of 65 years old age need long-term health care but unfortunately, only five percent retirees have long-term care insurance. This is surprising as well as shocking. It is not that they are not aware of it but they are looking for such plan that allows them to get back money if they do not use them. Some of them are searching for a plan that allows them asset based long term care. In other words, retirees also want coverage for food and medicine.

There are several reasons for why these people are demanding more. One reason is that long-term health care policy is so expensive that everyone can not afford it. According to Genworth Financial, a senior retiree, one needs $6000 per month for caretaking, prescriptions, drugs, etc. In 2007, the annual rate for a private nursing home room was $65,700 that rises to $81,030 in 2012.

The perspectives that dealing with long term care costs are limited such as long-term care insurance, Medicaid, out of pocket or Medicare. Medicare covers long-term care costs only for 20 days before a co- payment program.

Medicaid is provided to those only who have limited incomes and resources. Around 30 percent people do not use long term care insurance. So many insurers are going with asset based long term care coverage. Let us know what asset based long term care coverage is.

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Asset Based Long Term Care Coverage

It is a life insurance policy with a long-term care rider attached. It is an option other than traditional long-term care insurance. It provides an opportunity to multiply investment dollars to cover the premium cost and medical expenditures.

This plan is a secure strategy for planning for medical care without letting the policy goes unused. For example, put off money from right pocket to left pocket to receive four times more coverage. It operates asset base policy as well as life insurance policy. For instance, if a retiree person invests $50,000, he will get or policy will generate $90,000 death benefit.

With asset-based long-term care insurance, the $50,000 principal can generate a long-term care insurance policy of $200,000. The system is not too hard to understand. These benefits reduce the costs ultimately and make easy worries of people about wasting money for nothing.

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