Sell the Farm to Pay for the Nursing Home?


It’s no secret that farmers and ranchers tend to be an older demographic.  That being stated, one of the most terrifying parts of planning for the future is the prospect of financing long term care.
In 2001, Craig Miller started a consultant business in Gillette, Wyoming working with advanced estate business succession, wealth transfer, and asset protection for clients all across the Midwest.
At the New Trends in Agriculture Symposium held Wednesday in Glasgow, Montana, he explained to the audience that many consumers are reluctant to buy long-term care insurance.  While it is nobody’s dream to end up in need of this sort of care, a popular concern is that the investment will be wasted if it is not used.
Hoping to work around that hesitation, Miller told the group that some insurance companies are now combining life insurance and long-term care insurance with a new rider that allows the life insurance funds to be used towards long-term care fees.  Because the idea of this policy is that the benefits will always be paid in one form or another, there has been a lot of interest in the new offering.
While insurance benefits obviously change depending on the policy, Miller says that there are instances where this combination coverage can pay between $1,000 and $9,900 monthly.  The money is tax-free and could be available to pay for a critical illness, long-term care stay, assisted living, or an in-home care stay.  In order to qualify for that coverage, you would have to be deemed unable to perform two of six “Activities of Daily Living.”  
The 6 Activities of Daily Living are:
1. Eating
2. Bathing
3. Toileting
4. Dressing
5. Continence
6. Transferring
As with any insurance coverage, what is available is going to vary by company and policy.  For more information on this sort of long-term care plan, talk with your insurance agent.



© Northern Ag Network 2015

Haylie Shipp

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