Another Look at Financing Long-Term Care

Another Look at Financing Long-Term Care

When a person retires they have three pots of money to be concerned about. Each of these pots has a dedicated source of funds. They are:

  • The Living Money Pot: This pot contains the income needed for basic living expenses such as food and shelter, utilities, transportation, clothing, and the like. This money typically comes from Social Security, a pension, an annuity, distributions from retirement accounts, and, perhaps, a part-time job.
  • The Lifestyle Money Pot: This pot is for the things we want; things that make us happy, things that are nice but not as essential as the needs funded by the Living Money Pot. Things like golf expenses, hobbies, travel, a golf cart that looks like a Rolls Royce, and so forth. The Lifestyle Money Pot also funds Long-Term Care should it be needed. Let’s face it, if you need long-term care assistance, your golf and travel will probably be limited and the money for it diverted to long-term care expenses. This money comes from savings and investments. It is not a good idea to take money from a source, such as an IRA, that is needed for the Living Money Pot.
  • The Legacy Money Pot: This is the money that we pass on to our heirs. Sometimes it is after we are gone; sometimes we want to do something while we are here like fund a grandchild’s education. This pot is usually funded from investments, an owned business, real property assets, and life insurance.

Long-term Care expenses can be paid by selling an asset from the Lifestyle Money Pot, the Legacy Money Pot, or by buying an insurance policy designed to pay for this care. Some long-term care insurance policies have a feature that returns the premiums paid in if the coverage is never needed.

Another innovation is a life insurance policy, paid for out of the Lifestyle Money Pot, with a death benefit that can be used for long-term care expenses. Any portion of the death benefit that still remains when the insured passes is paid to the heirs (so it becomes part of the Legacy Money Pot).

Long-term care is assistance with the acts of daily living such as eating, dressing, bathing, transferring (i.e., from a bed to a chair), continence, and toileting. Neither Medicare nor Medicare supplemental insurance covers this care. The only government assistance for long-term care is through MediCal, a program for impoverished persons.

For further information regarding the long-term care financing options available, please call. There is never a charge for such consultations.

C. Lawrence “Larry” Thomas

C. Lawrence “Larry” Thomas began working with long-term care and Medicare programs in the mid- 1980s. He is currently associated with Insurance 101 Services to provide long- term care solutions to seniors and those approaching. Larry can be reached at (949) 374-3316 or ltinsurance@me.com.
CA Insurance License # 0C79256.

Latest News

Isolate Pure CBD

Health & Wellness Sorbet Mag

Isolate  Pure CBD

Bringing a Different Kind of CBD Company to Consumers An exciting new CBD company has emerged, capturing marke...

Staying on Trac with Body Flex Sports

Health & Wellness Jody Robinson

Staying on Trac with  Body Flex Sports

It isn’t often that a series of decisions made over a cup of coffee end up working out for the best: or becom...

Bare Bunny Aesthetics

Health & Wellness Jody Robinson

Bare Bunny Aesthetics

Baring Your Best Self with Surf City’s Newest Wellness Spa There is much to be said for feeling divine. The ...

What to Do When You Hear the Life-Changing Words, “You Have Cancer”

Health & Wellness Wade Smith, M.D.

What to Do When You Hear the Life-Changing Words, “You Have Cancer”

As a medical oncologist, I understand the toll a cancer diagnosis takes on patients and their families and I kn...

Hide and Seek

Finance Donald A. Hunsberger

Hide and Seek

Observations on How People Store Their Planning Papers Every estate attorney has heard the story recited in he...

Why older adults should review their medications

Health & Wellness Sorbet Mag

Why older adults should review their medications

St Joseph Hoag Health is here to help You know the routine: Step 1: Get your prescription from your physician...

Away at College Redux

Education Donald A. Hunsberger

Away at College  Redux

Decades ago we published a piece warning parents sending their kids to college for the first time to provide th...

Loaded Inheritance: Safe Gun Storage, Ownership and Disposal with California Gun Services

Business Showcase Ann Laurence

Loaded Inheritance: Safe Gun Storage, Ownership and Disposal with California  Gun Services

My grandparents owned a beautiful three bedroom casita in Solana Beach. Just up the road from the train station...

Greetings from Family-Friendly Fun Island-Style

Travel Jody Robinson

Greetings from Family-Friendly Fun Island-Style

Each year in Hawaii as the winter temperatures drop to a lovely 81 degrees, the groundswell charges the shores ...

Visiting (like) Royalty in the Queen City Charlotte North Carolina

Travel Jody Robinson

Visiting (like) Royalty  in the Queen City Charlotte  North Carolina

My entire experience with North Carolina up until a few months ago consisted of a vague knowledge of the sports...

The Proof is in the Paint with

Business Showcase Jody Robinson

The Proof is in the Paint with

But unfortunately phrases like “bottom-line oriented,” “unscrupulous,” even “cutthroat” have croppe...

Travel Can Be Tough on Your Legs

Health & Wellness Livia De Los Rios

Travel Can Be Tough on Your Legs

Medical compression stockings and socks are a travel essential Many people travel long distances and have to r...

Sorbet Magazine Celebrates Its September Issue!

Business Showcase Sorbet Mag

Sorbet Magazine Celebrates  Its September Issue!

It’s impossible to say what we love most about our issue release parties, especially the most recent one at V...

The Escher String Quartet Opens Segerstrom Center’s 2018-2019 Chamber Music Series

Entertainment Sorbet Mag

The Escher  String Quartet  Opens  Segerstrom Center’s 2018-2019  Chamber Music Series

Thursday, November 1, 2018 in Samueli Theater Segerstrom Center for the Arts launches its 2018-2019 Chamber Se...

Segerstrom Center Kicks Off Its 2018-2019 Jazz Season With Jazz Master Ahmad Jamal

Entertainment Sorbet Mag

Segerstrom Center Kicks Off Its  2018-2019  Jazz Season  With Jazz Master Ahmad Jamal

Segerstrom Center for the Arts presents Grammy® Award Lifetime Achievement Award Winner Ahmad Jamal for one pe...

Beyond the Books Nadia Milner delivers "Top Notch Services"

Entertainment Jody Robinson

Beyond the Books  Nadia Milner delivers "Top Notch Services"

I remember when one of my college friends was appointed Payroll Specialist for a large company in Pasadena. Whe...

Ready for Open Enrollment?

Health & Wellness Sorbet Mag

Ready for  Open Enrollment?

In a few weeks, you’ll be making important choices about next year’s health plan. As you consider your opti...

Making Educated Choices for Your Loved One’s Care

Education Jody Robinson

Making Educated Choices for Your Loved One’s Care

A Q & A with Derek Mannion, founder of Alliance Eldercare You think it might be time to consider options f...

Lea Michele and Darren Criss Continue LM/DC Tour With North American West Coast Dates

Entertainment Sorbet Mag

Lea Michele  and  Darren Criss  Continue LM/DC Tour With North American West Coast Dates

November 2, 2018  in Segerstrom Hall Following the demand of fans and rave reviews, actors and musicians ...

Drug Free, Surgery Free & Needle Free: A New, Proven Treatment to Reverse Erectile Dysfunction

Health & Wellness Jody Robinson

Drug Free, Surgery Free & Needle Free:  A New, Proven Treatment to Reverse Erectile Dysfunction

A Q & A with Dr. Michael DeYoung, M.D., LaSara Medical Group Men with erectile dysfunction (ED) often suff...