It is one retiree’s greatest fears. Imagine you, at age 75 suffer a devastating stroke. You never purchased long term care insurance and are suddenly facing potentially years of very expensive long term care. The prospect of outliving your savings is frightening and you don’t know what to do.
The thought of spending down your assets to qualify for Medicaid is not comforting. Moving in with your son or daughter is not very appealing. A new product may offer a solution. This product is relatively new and is not for everyone but, is an intriguing option. The product is an immediate fixed annuity where you make a single lump-sum payment to an insurance company and in return you receive a steady monthly stream of income for the rest of your life. It is essentially a backwards form of traditional insurance.
Unlike most insurance products, you are not insuring against need since you already require help before purchasing the annuity. You are instead insuring against time. By purchasing a fixed level of income after you become sick, you are protecting yourself against outliving your savings.
There is some risk with this purchase. Whether you should buy it and how much you should buy are complex questions. Depending on your situation, however this product could be very helpful. Be sure to consult with an experienced elder law attorney before making any decisions.