A Long-Term Commitment

Oppenheimer Life Agency, Ltd. December 05, 2024

On their wedding day, Maria and Will vowed to always be there for one another in times of sickness and in health. They never imagined that after the first eight years of marriage, they would be faced with a life altering experience. Will had a massive stroke, suffering paralysis and brain damage. He could no longer care for himself or his family.

Maria suddenly became the breadwinner and sole caregiver to both Will and their six year old daughter. One evening as she was attending to Will, they started to reflect on the past conversation they had with their Financial Professional early on in their marriage. During that discussion, he brought up the importance of lifetime planning. He recommended allocating a portion of their savings into an annuity with a long-term care rider. He explained that in the event of an illness or accident, if long-term care was needed, such as a caregiver, the annuity could provide the funds to cover the cost.

Let's review the two scenarios:

Current Scenario:

Maria and Will enter their marriage with $200,000 in emergency savings.

The cost of in home care is approximately $65,000. Maria and Will know that they have no option but to self-fund his care and within three years, they will have depleted their savings. If Will does not make a full recovery within that time, their financial future looks unsettling.

Recommended Scenario:

Maria and Will invest their savings of $200,000 into the recommended annuity with a LTC rider. This rider provides $600,000 of LTC benefit that can be applied to his in home care. Three years into Will’s recovery, Maria will still have $400,000 of that benefit to cover any additional long-term care cost. If Will makes a full recovery during that time, they will still have a portion of their savings, providing them with the confidence that their financial future is still secured.

Sail into retirement with confidence.

Sources & Disclosure

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This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials.

Oppenheimer & Co. Inc. does not provide legal or tax advice.