Huge $30 Trillion Wealth Transfer in Progress

Boomers, Late-Boomers, and GenXers have big bucks. They are also getting older. Long-term care costs may go from families to caregivers and facilities unless action is taken now.

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Huge $30 Trillion Wealth Transfer in Progress
3 Min Read March 7th, 2017 Updated:May 14th, 2021

Boomers, Late-Boomers, and GenXers have big bucks. They are also getting older. Long-term care costs may go from families to caregivers and facilities unless action is taken now. 

The steep and rising cost of long-term health care can easily wipe out an estate in a relatively short time. $30 trillion in financial and non-financial assets should pass from the baby boomers to their children in the next 30 to 40 years. The boomers are the wealthiest generation. However, there are storm clouds on the horizon that could change all that in the coming years.

The problem is few Baby Boomers (including Late-Boomers) or Generation X members have an advance plan for long-term health care. These costs can dramatically impact this transfer of wealth, which would have been earmarked for their children and grandchildren and instead go to caregivers and facilities.

Long-Term Care Costs Drain Assets Fast

The cost of long-term care services and supports is enormous. Most long-term care is delivered at home; those costs, while expensive, are less than assisted living, memory care, and nursing home costs. The LTC NEWS Cost of Care Calculator shows you the financial impact where you live, not only now but in the years ahead. 

According to CNBC, if the boomers want to pass their wealth to their children and grandchildren, they better consider affordable Long-Term Care Insurance.

The best time to purchase Long-Term Care Insurance is when you are in your 40s or 50s since these policies are medically underwritten and priced, in part, by your age when you obtain coverage. However, some boomers didn't plan, and now they are in their upper 60s or 70s.

Options for Older People or Those with Some Health Problems

If you need care now, it is too late. There are, however,  options for older adults with reasonable health. Two insurance companies offer unique annuities with Long-Term Care Insurance. You pay one time with the initial deposit creating a much larger amount of money in tax-free long-term care benefits. You get money from the policy by either needing long-term care, cashing the policy out, or dying. One way or another, you, or your family, will get money from the policy.

There are life insurance "hybrid" policies that also offer long-term care benefits. However, be careful, as some have policy language making it hard to get money for long-term care or plans that cannot even legally be called long-term care.

Seek Professional Help with LTC Insurance Options

A qualified and experienced Long-Term Care Insurance specialist can discuss these options. Experts suggest talking with a specialist since most financial planners or general insurance agents have little experience in how these products work, how they are underwritten, or even how they get used at the time of claim.

Limited duration or 'short-term' policies offer one or two years of care and are much more flexible with underwriting. Again, a specialist can discuss if it is appropriate for you.

The bottom line is it is better to plan early, ideally before you retire, instead of waiting when you are much older. More options are available when you are younger and healthier, and costs are very affordable. 

However, if you are older, you may still have good options available but be sure to speak with a qualified specialist.  

LTC Insurance will safeguard those assets and ease the burden care places on the family.

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About the Author

An LTC News author focusing on long-term care and aging.

LTC News Contributor James Kelly

James Kelly

Contributor since August 21st, 2017

Editor's Note

The cost of long-term health care is rapidly increasing due to the growing need for assistance with daily tasks caused by medical innovation leading to longer life spans and dementia. Medicare and traditional health insurance do not cover long-term health care costs, which can significantly impact one's lifestyle and legacy.

It is essential to consider the impact of aging and long-term health care on your family and finances and plan accordingly. Long-Term Care Insurance provides an affordable solution, as relying on family caregivers can be a burden, and professional care is expensive. Planning early and getting Long-Term Care Insurance in your 50s can provide more options and lower premiums.

Be sure you include an LTC policy as part of your retirement plan. Like most people, you will want access to quality care services, hopefully in your home rather than a facility. Although quality facilities exist, especially assisted living, which can also be an option. However, quality care is expensive.

The guaranteed tax-free benefits from your LTC policy will help you maintain control while safeguarding your income and assets and reducing the stress and burdens placed on your family.

Find a Trustworthy and Capable LTC Insurance Professional

Make sure you seek out expert advice. You can get help exploring the numerous possibilities available from all the major insurance companies from an expert in Long-Term Care Insurance. Premiums vary by over 100%, and each has its own underwriting guidelines.

This knowledge is not available from a general insurance agent or financial advisor. Seek help from a qualified Long-Term Care Insurance specialist and get accurate quotes and professional recommendations from all the top companies - Find a Long-Tern Care Specialist.

True specialists work with multiple top companies, maintain their continuing education requirements, and often hold the Certification for Long-Term Care designation (CLTC). Specialists can match your age, health, family history, and other factors with the most affordable and effective options.

Tools and Resources Available on LTC NEWS

There are a variety of tools and resources that LTC NEWS offers that can help you in your research:

  • Long-Term Care Guides  - LTC NEWS has several other guides that can help you plan or find quality care.
  • Frequently Asked Questions - Get the answers to the most often asked questions about long-term health care planning and LTC Insurance.
  • Filing a Long-Term Care Insurance Claim - Does a loved one - like your Mom or Dad - have a Long-Term Care Insurance policy and need to file a claim to get benefits? LTC NEWS will help. If they don't have a policy, but you need help in getting a plan of care and finding caregivers, LTC NEWS can also assist.
  • Reverse Mortgages - Learn about reverse mortgages and ask questions about how they work and if you or a loved one would benefit from one.

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