I am always happy to jump in as a blog resource for Elliot Raphaelson and his column. This recent article from November 24, 2020, “The Savings Game: Chances are you’ll need long-term care. How will you fund it?” covers the often controversial and misunderstood world of long-term care (LTC) from the financial standpoint.
In full disclosure, to cover all angles, I pinged my friend Jack Lenenberg of LTC Partners to assist us as well since he’s a top-rated long-term care insurance advisor.
In a perfect world, you would use annuities as supplemental coverage to LTC. Traditionally it is still the best coverage you can get, and never allow an agent or advisor to convince you to cash in your real long-term care coverage for an annuity of any type.
If you are smoking six packs of cigarettes a day and chasing it down with a bottle of Jack, you will not likely qualify for traditional LTC products and will have to go all-in on an annuity strategy. The bottom line with all annuity sales pitches is this - if it sounds too good to be true - it is. Every. Single. Time. No exceptions. As they say in Vegas, “If you don’t know who the rube is at the table, it’s you.” If you’re an avid reader of the content I’m spewing, you’ve heard me say a thousand times, “Don’t fall for the bad chicken dinner sales pitches.” A great way to not do that is to pack your reading list with super smart and super trustworthy advisors. Start with Elliot’s article that simply and succinctly addresses the long-term care gorilla in the room. It’s a must-read, in my opinion. And not just because I’m in it. That’s just a bonus.