A Lovely Family
May 2017
Issue #52


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Nancy Gould Past President  Estate Planning Council of Putnam County

The Kashi family moved their two children and their professional careers from San Francisco to New Jersey to care for her father. This is the family that you met in the video clip in April's newsletter.

All families who become care givers experience many changes in their lives. Their well established routines are interrupted. I have heard over and over that the hardest part of caring for a loved one was that family members had to give up their own lives.

Maybe the Kashi family did not feel that they had any other options than to move their family across the country. If they had had conversations with Herb (the father) well in advance of his health change they would have had time to explore different options.

An option could be a plan to sell Herb's assets for cash with which to pay for a home health-aid to care for him. Another idea is to create an income stream from a reverse mortgage on the equity in his residence. Five days of care per week by a licensed home health-aid can cost $50,000 a year in Metro New York. The cost is less in other parts of the country.

A third option is to purchase a long- term care insurance policy. The benefits of the contract are guaranteed to provide income when the insured needs assistance. How effective any of these options would be depends on the circumstances including the age and health of the loved one at the time of the planning.

Advanced conversations are important when planning a long-term care contract. The contracts are medically underwritten which means both the health and medical history are taken into consideration.

The other important consideration is that the premium is comfortably affordable. A very effective way to control the premium is to set up a co-insurance design with the insurance company. This means the insured agrees to pay a percentage of the future cost of care and the insurer agrees to pay the balance of the cost.

Here is a Sample Premium     
A male age 55 has a total benefit of $220,000 that can be paid out to the insured up to $4500 per month.

The Insured Pays a Premium of
$160 a Month

This example includes inflation protection.

Truly, it is so important to have conversations with your family about what kind of care they want, who will provide it and how will they pay for it. The stakes are too high to "roll the dice."

If a family member leaves their work to be a care giver, the cost in lost wages, benefits, future benefits and lost opportunities can cost a quarter of million dollars. It is not free labor by any means.

I welcome your comments and questions. Feel free to forward this information to friends. Use my website www.nancygouldltc.com as a resource as it has lots of information. Contact: nancy.gould@acsiapartners.com ; 914-242-3250.

Warm Regards,

Nancy will present "Medicare Today" at the Senior Summit Program,Thursday, May 25th, 9:30am-12:30pm, Rye Library