Phil Cannella explains insurance coverage
Phil Cannella – Phillip Cannella Blog: Phil Cannella explains that there are other ways to provide for long term care insurance coverage other than the traditional monthly or annual premiums that some are not too fond of.
Phil Cannella factors in long term care as a crucial element
As Phil Cannella explains it: “There’s a life insurance instrument called asset based long term care coverage (LTC) that provides the money you may need to cover medical care and assisted living should you or your spouse need them. You know what the best part is? You don’t have to pay the annual premiums that a traditional insurance policy requires.”
In the explanation Phil Cannella makes, he explains that funds drawn from an asset based LTC are tied to the equity of your home or other financial assets – your collateral is your shield. The equity is there… the value is there… so all you have to do to avoid paying thousands of dollars in annual premiums is provide the premium yourself in a lump sum as you would with a fixed annuity. And because it’s an insurance product, your premium will be guaranteed.
By way of example, you provide an insurance company a lump sum deposit of $100,000. In accordance with statutory accounting law, the company will place your money in a legal reserve account – and state auditors and examiners will take a close look to ensure it’s in there.
As Phil Cannella further amplifies, should you need long term care in any form, including nursing home care, home assistance, Alzheimer’s care or any other of a host of covered expenses, your lump sum will balloon to as much as 300% of the premium you’ve paid. It’s based on life expectancy, so the younger you are, the more it will balloon. If you secure the policy in your 50s, it can swell to about $300,000. Wait until you’re 80 and you may only gain an additional $25,000.
In Phil Cannella’s crash proof retirement system he factors in long term care as a crucial element all retirees should consider so as to protect their nest eggs in the event of an unexpected need.
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