Preparing For Long Term Care: Part One

Living A Long Life Is Supposed To Be A Reward!

Living a longer life is often seen as the ultimate reward for living well. Advances in medicine, nutrition, and lifestyle have helped millions extend their lifespan.

But there's a hidden consequence: longevity brings a higher probability of needing long-term care (LTC), and few are financially prepared for it. The result can be devastating—not only to personal finances but to family dynamics and legacy.

Thinking Through The Numbers Behind Long Term Care

Most people associate long-term care with nursing homes. But LTC is far broader. It includes in-home assistance, adult day care, assisted living, and other services needed when a person can no longer perform basic daily activities without help. According to the U.S. Department of Health and Human Services, 7 in 10 people aged 65 and older will require LTC during their lifetime.

That’s not just a risk—it’s a near certainty.

The financial implications are staggering. Depending on where you live, care can cost between $5,000 and $12,000 per month. If care is needed for several years—as it often is—this can exhaust savings, derail a spouse’s lifestyle, and force family members to become caregivers, often at the expense of their careers and personal health.

So What Is The Problem?

This is not just a healthcare problem—it’s a wealth strategy problem. Most people don't have a plan to cover these costs in a way that protects their other financial objectives. Relying on Medicaid requires spending down assets. Relying on family can strain relationships. Relying on self-funding can drain a lifetime of savings meant for income or legacy.

The Solution?

OneAmerica’s asset-based LTC products offer a multidimensional approach. Instead of purchasing traditional insurance, which may never pay out, clients reposition existing assets—like cash or underperforming investments—into a product that provides guaranteed benefits, no matter what happens. If care is needed, funds are available. If not, the money passes to beneficiaries via a tax-efficient death benefit. In many cases, cash value can also be accessed for other needs.

This approach aligns with Paradigm Life’s Three Pillars:

• Protection: It safeguards your wealth against the risk of extended care.

• Cash Flow: It uses existing capital, often repositioning dormant assets rather than relying on new income.

• Wealth: It helps preserve the value of your estate, ensuring care needs don’t erode your legacy.

What is even more powerful? Some OneAmerica policies offer lifetime LTC benefits. This means coverage doesn’t run out after two or three years—an important advantage given the increasing longevity of care needs due to Alzheimer’s and other chronic conditions.

Come back tomorrow for more on planning for Long Term Care! Contact Paul with any questions that you have regarding using OneAmerica's policies for Long Term Care!