Chris DiGregorio is a well established member of the financial advisors of Janney Montgomery Scott, LLC team who provides clients with experienced pre- and post-retirement planning services. In his work with Janney Montgomery Scott, Chris DiGregorio emphasizes the importance or properly balancing portfolios between equity, insurance, and other diversified holdings.
With the expenses associated with long-term care an extreme burden to many, those about to retire are often concerned that an extended stay in the hospital will quickly deplete retirement savings and income. Unfortunately, long-term care insurance (LTCI) can be expensive, particularly considering that it will, with luck, never be used.
One solution is to purchase a ”combination" policy that includes both permanent life insurance and LTCI. As required, the pool of money associated with such coverage can be used to pay monthly health care expenses. In cases where the money is not used during the principal’s lifetime, it provides the designated beneficiary with a death benefit.
Another alternative to expensive long-term care policies is to take an existing life insurance policy and add an acceleration rider. This allows the death benefit to be tapped for long-term care expenses should they arise. Keep in mind that optional benefit riders involve an additional fee, as well as another layer of conditions, limitations, and contractual terms, and will not be suitable for every investor.
