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Long Term Care Insurance

Long Term Care (LTC) is the assistance or supervision you may need when you are unable to perform some of the basic activities of daily living (ADL) — bathing, dressing, eating, continence, toileting, and transferring. You may receive long-term care in a nursing home, assisted-living facility, or in your own home. Typically, older people use the most long-term care services, but a young or middle-aged person who has been in an accident or suffered a debilitating illness might also need long-term care.

Long-Term Care Hybrid Products

With financial markets at All Time High (ATH) levels, savvy investors approaching retirement are increasingly taking some risk off the table. Hybrid Long-Term Care Insurance policies can allow you to receive a 100% preservation of premiums paid while simultaneously providing significant leverage (between 2% – 6%) in the event you need Long-Term Care services, with home health care being the most common.

By moving a small portion of your investments from stocks or bonds to guaranteed insurance policies with cash value, you can secure some gains while providing significant leverage on your money should you need Home Care or even nursing home or assisted living services and assistance later in life.

Can I Qualify?

You must be healthy to be considered a candidate for Hybrid LTC policies.

A complete health history is considered. Chronic conditions can warrant refusal, but especially histories of cancer/stroke/heart attack or any bone or joint issues can be enough to make obtaining coverage a challenge. If you are healthy, on “maintenance medications” for conditions like high blood pressure or cholesterol, you will have no problem finding a policy. Keep in mind, there are several A++ rated companies out there as well who sell hybrid coverage options.
Partnership-qualified policies must meet special requirements that vary from state to state. Most states require Partnership policies to:

Comparing Life Insurance with Long Term Care Rider to Regular Long-Term Care

Every situation is different, and premiums are based on your age, state, health, and marital status. Consult with a qualified adviser (online or in person) who can go out and search the market to compare your options when it comes to which Long Term Care policy to consider. See the chart below to view how the power of compound interest will grow your benefits over time.

Protection From Rate Increases

Hybrid Long Term Care Insurance plans’ premiums are guaranteed to never increase. This gives you the ability to plan knowing your Long Term Care plan is locked in place, allowing you to enjoy retirement. As with any financial decision, having a trusted adviser is the most critical element. Avoid taking advice solely from your financial adviser, especially if they sell these products. They often have their hands tied to only one company, leading to biased advice. We work with every company and will shop the entire market with one source as opposed to having to go to multiple people all telling you how the single product they sell is the best.

Traditional Long-Term Care

Simply put, traditional long-term care (LTC) insurance is a policy that helps individuals who can no longer care for themselves afford the services they need. Individuals who use LTC insurance can expect coverage for daily activities like driving, medication management, and more.  LTC coverage can also help with things like home health care, respite services, hospice care, adult daycare, and extended stays in nursing homes/assisted living facilities. Because most healthcare insurance policies do not cover many activities in the long-term world of needs, LTC insurance can be a must-have for those who expect their needs to grow in the future. The average LTC benefit period lasts three years, which begins when the individual or a family member contacts the insurer to indicate that the beneficiary is no longer able to care for their basic needs at home. 

Many in the industry feel that the traditional Long Term Care model and policies are archaic in the way they are designed. Therefore, Traditional LTC remains the best option to build a significant pool of money for asset protection in the event an insured needs to go out on claim.