Ted and Barb Smith’s 1,200-acre farm is worth $4.5 million. Soon after Ted’s death, sons Leo and Rich become concerned that the cost of long-term care could compromise the farm’s ability to remain viable, forcing the sale of acreage needed for production. Their father’s biggest goal was to provide for his family, specifically his wife’s potential care needs, as Ted and Barb had recent deals with a family member’s care.
A possible long-term care solution
With the average cost of daily care throughout the United States running roughly $249 per day ($90,885 per year), the need to protect the farm from long-term care risks is critical. To mitigate this risk, Barb could purchase a standalone long-term care policy with an indemnity style benefit, such as Nationwide YourLife CareMattersSM.
By repositioning $100,000 of her assets to pay the premium on a CareMatters policy, Barb will receive a long-term care benefit of $409,580. This will provide Barb with a monthly benefit of $5,688 for six years, allowing her to get the care she needs. Also, if Barb were to use all of her long-term care benefits, her children would still receive $27,305 as a guaranteed death benefit.