What people fear if a life changing illness happens!

Want to share some points from a recent online survey about people’s concerns. Sun Life Financial asked 4,116 full time employees, to describe their greatest concern if a life changing illness were to occur. Their average age was 43 and participants had a median household income of $51,000. The concerns expressed were about:

● The financial impact. 47% said this.

● Dying. 29% said this.

● The emotional impact. 22% expressed this.

People have indicated to me at various times a concern about not having enough money if something where to happen. Thus, I found it very much of interest that almost 50% are reporting this concern.

Since many are concerned the question becomes what can be done to offset it. I believe the most effective and economical solution is for individuals to buy Long Term Care insurance. Why?

  • Having funds in this special kind of insurance’s benefit pool means they can then hire professionals to provide needed assistance. Having professional help means they won’t become a burden on family. It will also enable them to be better able to maintain as much independence as possible and thus retain their dignity.
  • Children won’t have to face the very emotional and difficult task of providing personal care to a parent! Thus, they will be free to manage the assistance you are receiving; to care about you; plus help as they can.
  • Having this special kind of financial protection means you should not have to worry about the conflict, which often develops among children. What causes a problem? The concern, which is often raised, is their parent’s savings nest egg is being spent for the care of one parent vs retaining these funds for the other.

Some say – Wow Long Term Care insurance is expensive. Yes it is but in comparison to paying yourself for the very high cost of professional assistance here in Conn it results in the premium for this important insurance being lower than the premium cost vs risk of other insurance we have such as on our car or our home! 

Call John C Parker today at 860.739.0005 if any questions.

Let’s look to the future

Certainly none of us can see tomorrow. On the other hand considering some trends, in what people are now doing, can give us an indication of what we might expect to see.

During this year’s American Society of Aging annual conference Ken Dychtwald, PhD who is CEO of Age Wave was a keynote speaker. He is a leading authority on our aging population. I listened to a video of his presentation and want to share some of his points. I think they can help us understand what we may see or experience in the future.

BTW- the recording of this talk is on the home page of AgeWave.com

● People certainly are living much longer, which he says changes everything. He indicated the way we do things over our life span has been changing and is no longer a standard sequence of a period of time in education, then working, and then retiring.

● People are now doing different things at different points in their life. In other words what they want, when they want not what others say should be done. He referenced some surveys, which tell us people recognize they cannot just rely on income from government benefits or employer retirement plans but do need to take personal responsibility for their financial future. However, as a general statement they are not looking ahead and planning (saving) for the future. Why? Their current focus is on doing things and going places.

● When asked about retirement years 91% of people say they expect to be happy. 70% want to work, some amount, but do something different. They also want to stay connected and to have freedom.

There is another thing we know about what happens when people live longer! Their chance of developing frailties and/or encountering other changes in health goes way up. The American Society of Aging previous reported  –  60% to 70% of Americans 65 or older will require assistance with getting around at some time.

Living longer = big chance of frailties’ and tells us no one can say they will or won’t “need help to get around”. Because of this, and especially in situations when professional help is needed for an extended period the “funds for the future”, which someone put together and most likely is small, can be put at a significant risk.

What to do? Buy Long Term Care insurance. Yes this important financial protection insurance is expensive but the funds many have put aside are small and the risk of having to pay the very expensive assistance costs directly is big. Then too, the cost of this  premium vs risk in comparison to the other kinds of insurance we have is lower!

What do others say about buying this special kind of long term health insurance? Ken Dychtwald, for one, has stated planning for your financial future is important and as a part of this Long Term Care insurance made sense to him because:

  • Independence can be maintained and he did not want to burden children financially or emotionally.
  • You can get quality care in the setting you choose.
  • You stay in control of your money, retirement assets, and your life.
  • Your spouse’s lifestyle and financial security can be protected, while you’re alive and afterwards.
  • An inheritance for your children and grandchildren can be protected.

John C Parker, RHU, LTCP

Niantic CT