Long Term Care Insurance & Other Options
Why consider long-term care planning?
• do you believe you are going to live a long life?
• do you think if you live a long life that you will ever need care?
• do you know the emotional consequences it would have on your family?
• do you know the physical consequences it would have on your family?
• do you know the financial consequences it would have on your family?
• do you know that it can cost $100,000 per year for care?
• do you know that you would have to pay with your income?
• do you know the effect it would have on your retirement portfolio?
• do you have money allocated in your portfolio to pay for care?
• do you have a plan to pay for an average of 3 years of care?
• do you know that without insurance you are self-insured?
Long term care financing options:
1) Self-insure: you pay for care yourself out of savings, retirement income & investments
2) Medi-Cal state aid: Medicaid/welfare health care
3) Family care: family provides care or pays for care.
4) Long term care insurance.
5) Linked benefit plans (life insurance w/LTC, fixed annuity w/LTC)
Long term care insurance options:
• Standard long-term care insurance
This is the most common LTC policy.
There are a number of companies selling this policy.
This is underwritten, you must health qualify.
Get a quote for a standard LTC policy.
• Partnership for Long Term Care Insurance.
Partnership policies cost the same as standard policies.
Partnership is similar to a non-partnership policy with additional benefits to the consumer with lifetime asset protection from Medi-Cal as the main benefit.
More about partnership long-term care insurance
Get a quote for a Partnership LTC policy.
• Shared Benefit Policies
The Shared Benefit rider provides additional funds if one spouse uses up their lifetime benefit.
If one partner dies, the survivors benefits will increase by the deceased partners remaining benefit dollars.
Get a quote for a Shared LTC policy.
• Linked Benefit Plans
- Whole-Life with Long Term Care Rider
These are standard whole life insurance policies with the addition of a long term care rider.
The premium
can be single,
multi-year,
or lifetime
premium depending
on the policy.
The policy
has underwriting,
cash value,
and some
policies
offer a
return of
premium.
Will cost more than standard LTC insurance because of the death benefit, LTC rider, and the cash value.
Can rollover (1035) an existing whole life policy.
Get a quote for a Whole Life LTC policy.
- Fixed Annuity with Long Term Care Rider
Single Premium Deferred Annuity (SPDA)
Two kinds are
available.
Underwriting
required and
no underwriting
required.
Get a quote for a Deferred Annuity with LTC
Summary
The LTC Guide has more comparisons
of your LTC funding
options. Your
decision today
on how you plan
for long-term
care may be the last decision you make about it. Our health changes
without warning. If you are insurable today doesn't mean you will
be insurable tomorrow.
With LTC insurance options that are health underwritten (they
review your medical
records) it takes
1-3 months to become
insurable. Better
to get insured
1-3 months before
your health changes.
Contact us if you have any questions, need additional information, or have feedback for us.
Linked: Shoppers Guide To Long Term Care Insurance.pdf
National Assn. of Insurance Commissioners
Next: Get a free quote
or California Partnership for LTC
