With people living longer, on average, than ever before, the care needs of older adults has changed. And so have the products available to provide that care.
As a financial planner and insurance broker, Russell Caforio, of Russell F. Caforio and Associates Inc. in Oak Brook, has helped people plan for the future for 45 years. In that time he saw the birth of long-term care insurance, the increased need for the product, and the many changes that have happened since.
Caforio said planning for long-term care should be part of everyone’s financial planning package. He has helped people as young as their 40s put instruments in place to cover their care later in life.
“Young people are seeing what it costs to care for their parents, for their grandparents,” Caforio said. They also are seeing their own inheritances depleted. Sometimes, they even see their own nest eggs disappear as they dip into their own savings to pay for a parent’s care.
Many of the products intended to provide cash when the time comes for care are also asset preservation vehicles, Caforio said. Some long-term care policies, for example, are actually riders on life insurance or annuity policies, with benefits that can be passed on to survivors if not needed for long-term care.
“There’s a lot more flexibility than we used to have,” said Caforio.
Finding out which products are best for each client’s unique needs starts with a full financial evaluation.
“We take a look at the whole picture, and figure out how best to solve the problem,” Caforio said.
Once in place, long-term care coverage – whether it’s through a standard policy, attached to a life insurance product or contained within an annuity – doesn’t just pay for care in a nursing home. It can be used to cover the cost of assisted living, memory care or care inside the home, whether it be full time or for a few hours a week.
To get the conversation started about how you will pay for care when and if the time comes, call Caforio at (630) 495-2901.