Statistics Canada states that over 350,000 Canadians 65 or older and 30% of those older than 85 will reside in long term care facilities. With increasing poor health and decreased return on investments, the fear of facing financial instability in your declining years is real.
How will this impact your family?
Caring for an aging parent or spouse takes its toll emotionally and financially. Adult children with families and job pressures of their own are often torn between their obligations to their parents, children and careers. This often results in three generations feeling the impact of this care.
Is it important to you to have control over your level of care?
Norman (age 64) and Barbara (age 61) have three children, aged 32-39. While still in good health the family does have a concern for their future care.
To safeguard against failing health it was decided that they purchase Long Term Care Policies to protect their quality of care and a Joint Last to Die Term 100 Life Insurance Policy to recover the costs.
The Long Term Care policies would pay a benefit for facility care in the amount of $1,250 per week for each parent. The monthly premium for $10,000 per month Long Term Care for both Norman and Barbara is $544.17.
The Premium for a Joint Last to Die Term to Age 100 policy with a death benefit of $250,000 is $354.83 per month.
Upon the death of both parents $250,000 is paid to the beneficiaries (children) tax free from the life insurance policy, returning most if not all of the premiums paid.
Advantages of the Long Term Care Back to Back Strategy
When is the best time to put this structure in place?
Please call me if you think your family would benefit from this strategy. Feel free to use the sharing icons below to forward this to someone who might find this of interest.
Should you wish to learn a little more about long term care, the Canadian Life and Health Insurance Association (CLHIA) has published a brochure which can be downloaded here