Gus Dekavallas was
today's main speaker.
Larry and Tom joined Gus to help answer
questions on this topic.
Today's speech is geared towards business owners.
Long term care is a scenario that we should all be
worried about. If you don't have long term
health care it can wipe out your estate.
Brief Personal Bio
As many of you know, my son Adam owns a dance
studio. Adam is joining Gus in the business
while his wife continues to run the dance studio.
Handout includes information about Gus. He
began in computers but didn't like keeping up with
the technologies. He then owned a furniture
store. Sold that business and got into
insurance.
Long Term Health Care
The costs of long term health care are just
astronomical. The average cost of a facility
is $150 a day not including special services.
MetLife is one of the leaders in this industry.
Your Business Advantage...LTCI as a Key Person
Benefit
We are talking about the need of having a plan.
Knowing what's at stake and what to do. Tom
told the story of his mother who was active,
working, had assets. She was diagnosed with
cancer and died within 6 months. So he has had
first hand knowledge of the costs involved in a
situation like this. It affects the entire
family. If we had had the insurance it would
have made life a lot easier.
"Having adequate long-term care ins is the single
most influential determinant of whether an
individual will have a financially secure
retirement."
- Purchas during high income year
- Deduct as business expense, except spouse
- Benefits generally tax free
- You choose who to cover
- Premium may be fully paid before retirement
Why Plan Now?
- We live longer
- Long Term Care is expensive
- LTC costs increasing faster than inflation
- Health change may make you ineligible
The Cost of Care
Annual yearly cost of nursing home care
- 2006 $75,190
- 2016 $122,477
- 2026 $199,501
- 2036 $324,967
How Will You Pay?
- Health Insurance
- Medicare
- Medicaid
- Self-Insure
- Using your own, after-tax dollars
What impact could this have on your
retirement savings?
[EXAMPLE] Assumptions
- Current Ages 52/50
- Five years of LTC, beginning age 72, @ $200 current cost
- 5% compound inflation - LTC Costs
- 6% Net Return on Investments, 0% Tax and other
adjustments
End result...$1,211,219
LTCI As Key Person Compensation
- Your business deducts the full premium for employees and
spouse
- includes C Corp Owner-Employee
- You can discriminate by class
- Premiums do not count as income
- Benefits are generally tax free
- Can elect a 10-Pay
Sample Plan Design
- $200/day nursing home & home and community based care
- Compound benefit 5%
- 90-day elimination period
- Lifetime benefits
- Indemnity benefits
- 10-pay option
How to choose a Long Term Care
Insurance Carrier
- Financials
- Engineering
- Consumer Value
How Does Long Term Care Help?
- Helps relieve the financial burden
- Helps pay for care
- Helps protect assets
- Relieves the emotional burden
- Puts a plan in place
- Provides an advisor to help
- Helps ease the burden
Long term care insurance allows your retirement plan to
execute for the purpose for which it was intended.