One Manâ€™s Plan (Part 2)
By Mike Flynn: http://www.lifeinsuranceinsights.com/
“The health issue is most important. There are no assurances, but being able to afford the best in medical care is essential. So, my wife and I both have Medicare, parts A and B and a Medicare supplement (plan F) that covers all deductibles and co-payments as well as a prescription plan. I see my doctor more now than I ever did when I was working full-time and my coverage is all-inclusive. At this age, preventative care becomes all important. Itâ€™s no wonder Medicare funding is in such big trouble. We also maintain a travel accident and health policy since we do travel a great deal to other countries.
When I retired from my 45 years in the insurance business in 2004 I also decided to give myself a leg up by adding a personal trainer to my agenda. I never seemed to find the time when I was consumed by the office five plus days per week, but now my cardiovascular and muscle toning sessions twice weekly are just enough to keep me feeling good and good about myself. In fact, I felt so good about myself that I came out of retirement in 2008 to join my good friend Charan Singh at SelectQuote.
Still, there is nothing to assure that my wife or I will not suffer a debilitating illness requiring extended care that is not covered by these health policies. Dementia and Alzheimerâ€™s come to mind as the greatest demons we may have to face. Medicare doesnâ€™t touch the expenses associated with home care or nursing homes and qualifying for Medicaid is something I would never want to face.
The thing is, the person with the affliction does not suffer nearly as much as the spouse and other family members. It is not unusual for expenses to run into the hundreds of thousands of dollars. And this is where the health and financial factors cross paths. Thatâ€™s why, when I was age 62, I purchased a Long Term Care Insurance Policy that became fully paid-up in 10 years. I paid for it during my prime working years and now I never need to be concerned about personal financial devastation or family chaos that accompany these aflictions. I canâ€™t tell you what peace of mind I have knowing that I have a policy whose benefits compound annually by 5% and that I will never have to pay another dime of premium.
My financial plan will not be derailed by the expenses of long-term care. I saw my father-in-law end up having to spend everything he had worked for, first for home care and finally in a nursing home. Toward the end he seemed oblivious to his plight, but his wifeâ€™s death a year before was preceded by a tormented time worrying about how to get her husband the best care and where the money would come from to pay for it. He had been a great provider during his working years, but he just failed to plan. That will not be my legacy.”
Part 3, next week