The value of voluntary long-term care insurance.

Recently I was involved on a case where adult children, as part of their financial planning, explored the purchase of long term care protection on their parents. (Of course, the parents had to consent, and qualify medically.)

The rationale was this:  the adult children and spouses understand that 40% of women, and 37% of men, at some point will assist an individual requiring long term care.  (And 70% of people 65 or older can expect to use some form of long term care. Source)

Statistics also that report nearly 2/3 of those caregivers end up making work accommodations to provide care for a family member – usually a parent or in-law that most often is still living at home.

As the parents do not have long term care insurance, the adult children are exploring purchasing the policies as a way to extend their parents’ limited resources and protect their own respective incomes in the event long term care become necessary.   Yes, this seems like a generous gift to their parents but this is also smart balance sheet planning on their part.

(The adult children know that AARP has found data showing that a 50-year-old or older family caregiver who leaves the workforce to care for a parent forgoes, on average, $304,000 in lost salary and benefits over their lifetime. These estimates range from $283,716 for men to $324,044 for women.)

Here is a helpful link to a page where you confirm today’s cost of care  and what it may cost in the future.

As today there are more options available for long-term care protection solutions, let’s talk.


New York State residents: for a complimentary consultation and review of available options, please call me at (518) 346-2115 or schedule a telephone appointment at a time most convenient for you.



Buy-Sell Agreements Funded with Life Insurance

ISR Introduction: A Buy-Sell / Business Continuation Sell agreement should be considered in every closely held business. This agreement defines the disposition of an owner’s interest in the business upon the specific triggering event such as a partner’s death, disability, retirement or other termination.  This is especially important when the owners want the business to stay with the remaining owners or family members and want a way to protect the business. A well documented, and properly funded, agreement can protect the interests of all the owners and help maintain continuity of the business after the triggering event. The agreement can take different forms, including

  1. Entity purchase or stock redemption.
  2. Cross purchase.
  3. Wait and see.

Many Buy-Sell Agreements are funded with Life Insurance. View the slide presentation and contact me to request a complimentary consultation.

Disclaimer: I do not provide tax, legal or accounting advice. I recommend qualified attorneys, accounting and funding professionals to assist in the formation, valuation and funding of your buy-sell / business continuation arrangement. 

Using Annuities in Medicaid Long-Term Care Planning

Annuities, long-term care insurance or a hybrid life insurance / LTC rider are better options than trying to go-it-alone.

Guide to Long-Term Care blog

Medicaid applicants with too much money or assets are denied coverage for long-term care and have to pay their own nursing home bills. For many, their savings would be depleted within months, leaving the Medicaid applicant’s spouse destitute. Annuities can magically wipe away these excess resources that are preventing Medicaid eligibility and replace them with a monthly check, payable to the applicant’s spouse (referred to as the “community spouse”).

Sound too good to be true? It’s not, and when done properly, this technique can preserve a large portion of a couple’s resources to provide for the community spouse, who may live for many years, and possibly, the couple’s heirs.

Read complete article here:

For annuity quotes: 
(some annuities offer LTC benefits that pay out more than the annuity value)

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Achieving Financial Balance

The Living Balance Sheet – innovative thinking and advanced web technology to help you achieve financial balance.
Watch the video and call me toll-free nationwide at 800-503-1972. I’ll show you how a customized financial scorecardcan help you!


Link to Living Balance Sheet

The personal savings habits of Americans have reached a four year low. (Oct 2011; Federal Reserve)
According to a March 2011 survey conducted by the Employee Benefit Research Institute, 29% of Americans have a savings of less than $1,000 while 56% have less than $25,000 saved. These troubling statistics are not without precedent. In July of 2006, Tracey Anne found that 97% of Baby Boomers did not have enough saved for their retirement. Then and now, Americans are not being proactive about planning for retirement. 55% of Americans did not save one penny in the prior year, according to FINRA Investor Education Foundation in December of 2010. But poor savings habits are just the tip of the iceberg. American personal debt is near an all-time high, (Oct 2011; Federal Reserve) including $772 billion in outstanding credit card balances. (Q2 2011 Federal Reserve, The economic impact is far-reaching. Over 2.32 million Americans applying for mortgages have been rejected. (Nov 2011 The Washington Times, MBA) The average student graduates with $23,186 in debt. (Spring 2011 Fed Reserve Bank of Richmond) College students collectively owe more than $1,000,000,000,000. (Oct 2011 USA Today, Federal Reserve Bank of New York) Additionally, more American filed for bankruptcy than graduated from college and filed for divorce. (Bankruptcy: 2010 U.S. Court System) (Graduate: 2012 2010 Census, 2009 Data) Due in large part to heavy debt, 42% of Americans lives paycheck to paycheck. (Aug 2011 Survey) Spending is another factor. 55% of Americans spend more than their annual income. (Dec 2010 FINRA Investor Education Foundation) 10,000 baby boomers will turn 65 years old today and everyday for the next 18 years. (Dec 2010 Pew Research Center) It is important that baby boomers and younger Americans alike plan for retirement. According to a June 2011 study by the Urban Institute, Social security will provide an annual income of $26,000. When you consider that the U.S. poverty line for a family of 4 is $22,300, (2010 Census, U.S. Census) $26,000 is not enough for a secure retirement. Referencing back to the 2006 findings from Tracey Anne, not much has changed with regard to American retirement planning. The study found that 62% of Americans would retire with less than $25,000, 35% with less than $100,000, and only 2% with an adequate pension or retirement account. It is imperative that Americans reverse this trend by being proactive about retirement planning.

The Living Balance Sheet® and the Living Balance Sheet® Logo are registered service marks of The Guardian Life Insurance Company of America (Guardian), New York, NY. The graphics and text used herein are the exclusive property of Guardian and protected under U.S. and International copyright laws.Guardian, its subsidiaries, agents or employees do not give tax or legal advice. © Copyright 2005-2014, The Guardian Life Insurance Company of America