Could long-term care short circuit your retirement income security?

Americans are living longer than ever before.

Well into retirement, we are traveling, gardening, or just running to keep up with grand kids.

In fact, 70% of individuals age 65 or older will need some type of long-term care.1

Whether it's temporary or permanent, it could devastate our future and our retirement income security.

There are national averages of long-term care costs:

• Nursing home, semiprivate room: $181 per day, or $66,065 per year.1
• Nursing home private room: $205 per day, or 74,825 per year,1
• Home health aide: $25 per hour.1

Preparing for potential need for long-term care makes sense, especially if you can help protect your existing assets at the same time. Your loved once will also appreciate your preparations.

1Cost as of 2007. U.S. Department of Health and Human Services-National Clearinghouse for LTC Information, www.longtermcare.gov 03/26/2008

Today I met (for purpose of this blog I call her 'Mary'). Mary, healthy 65 year old nonsmoker is enjoying retirement. She set aside $300,000 in the cash portion of her retirement portfolio in case she should ever need long-term care. After talking with Mary she moved $105,000 into single premium product and freed up the remaining $195,000 to seek further growth. Now, Mary's prepared for three possibilities, all of which are guaranteed... in case of long term she will have more than $500,000 for LTC related expenses, more than $200,000 in case of unexpected death, and at any time Mary may request return of her initial payment of $105,000 no question ask just in case she will change her mind.