This blog post is designed to provide general information on the subjects covered. It is not, however, intended to provide specific estate planning, insurance, tax or legal advice. Please note that LTC Consumer and its representatives do not give financial planning, tax or legal advice. You are encouraged to consult with your tax advisor or attorney concerning your own situation.

So Many Long-Term Care Plan Options, So Little Time

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Deciding what kind of long-term care (LTC) coverage to purchase can be a daunting task. That’s why LTC Consumer specialists are so helpful. They’re brokerage, so they’re not tied to one carrier and one product. Currently they offer ten carriers and a variety of products with each carrier. Working with a specialist at LTC Consumer will alleviate the stress of deciding. We listen to your retirement planning concerns, and we help you find an LTC solution that works best for your situation and your family. We’ve listed some statements below that may help you decide which product best fits your needs.

Short Term Care, Long Term Care, and Hybrids - oh my!
Short Term Care, Long Term Care, and Hybrids – oh my!

Short Term Care Insurance

  • Long term care insurance (LTCI) is too expensive for my current budget.
  • I only want coverage for a year, and then I can figure out the rest.
  • My health disqualifies me for LTCI.

Short-term care insurance (STCI) offers a shorter benefits duration (typically 12 months or less) and often provides a smaller daily benefit to offset the cost of care. These policies may be as small as $50 per day for three months. This can give the family time to prepare for further care for a longer time if necessary. There are also certain health conditions that our STCI carriers are currently accepting, that our LTCI carriers are not. A specialist can help you determine what your health qualifications may be.

Long-Term Care Insurance

  • I want a partnership LTCI policy that will allow me to retain my assets and qualify for Medicaid.
  • I want the best tax-deductible savings for my LTC spending dollars.
  • I don’t want to continue paying premiums once I go on claim.

LTCI is a policy which pays for LTC services. Benefits are triggered when the insured can no longer perform two out of six activities of daily living or when a doctor confirms they have a cognitive impairment such as dementia or Alzheimer’s. If an LTCI policy is partnership, then the policy holder can retain assets up to their LTC policy benefit amount. Premiums for LTCI policies are tax deductible, and once you go on claim your premiums will stop.

“We listen to your retirement planning concerns, and we help you find an LTC solution that works best for your situation and your family.”

Hybrid Policy Coverage

  • Just in case, I want to be able to cash out my policy.
  • With this policy, I want to be able to leave life insurance for my heirs.
  • I want to be able to do a one-time 1035 exchange.

A hybrid product packages life insurance or an annuity with LTC coverage. This option allows policy owners to cash out their policy if they need funds, leave heirs a partial refund of premiums if the policy owner didn’t use their LTC coverage, or use the LTC coverage available. Buyers can also do a 1035 exchange with an existing annuity or life insurance policy. Hybrids also bring guarantees to never have a premium increase. They may be a great solution for higher net worth individuals concerned with LTC planning. Hybrids often require a single, upfront premium ranging from a minimum $50,000 to $130,000 or more for average users.

 

If any of these statements rings true for you, or you have any further questions, contact a specialist who can help you determine which LTC planning solutions is best. Not everyone needs LTCI, but everyone needs an LTC plan.

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