If you’re curious about alternatives to long term care insurance, consider the following options.
Hybrids or Short-Term Care Products
If long term care insurance doesn’t fit within your budget, there are other ways to protect your finances and your future. LTC riders can be attached to annuities or life insurance policies to offer long term care protection. In addition, short-term care insurance can offer up to one year of coverage at a much more affordable price.
We recommend some coverage is better than none. An LTC Specialist can help you decide what’s best for your situation and budget.
Self-Fund Your Care Needs
Families with high income and assets may not need long term care insurance to pay for their care because they can pay for it themselves. Self-funding is an option for those with whom it applies.
When making a self-funded long term care plan, consider the cost of care in the future when you need it. Keep in mind, care may be needed for as few as a couple months or years, or with dementia or Alzheimer’s, care may be needed for five to ten years or more. When self-funding, plan for the worst-case scenario to make sure your income and assets can cover it.
Depend on Your Family and Friends
Many forgo long term care coverage and services to be cared for by their families. This can be a good option for families who live together where strong family bonds are present. Not all families today can take in aging parents and offer the specialized care they need. Sit down as a family and decide if this is the best option for you and how care will be provided.
Medicaid Helps Those Who Qualify
Medicaid is a joint state and federal program designed to help low-income individuals get the care they need. Not everyone qualifies for Medicaid and most states require you to spend down to $2,000 before the state pays for your care.
Medicaid may be a good alternative for those without income and assets to protect who otherwise couldn’t afford insurance coverage or care services on their own. The downside is you have less choice in deciding where you receive care and many state programs have aggressive asset recovery programs to recoup benefits paid for care.
What’s your long term care plan? Whether you choose insurance, self-funding, or relying on your family or the government, it’s important to make a plan for your future. If you’re curious about the cost of long term care insurance or other similar products, discover LTCI rates online with our easy quoting tool and speak with an LTC Specialist for more information.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.