Long-Term Care

Solutions no matter your situation.

The Truth About Long-Term Care

Long-term care costs may be one of the largest roadblocks to a successful retirement.

In recent years, costs have increased substantially and many struggle to cover long-term care costs for themselves or their spouse in addition to their already expected retirement needs.

Long-Term Care Solutions

Long-Term Care insurance is designed to help cover the expenses associated with the need for long-term care, including personal and custodial care in a variety of settings such as your home, adult day care facilities, assisted living, nursing facility or hospice.

Common Solutions

Stand Alone Policy

Life Insurance with Long-Term Care Rider

Fixed or Indexed Annuity

Self Funded

What's the best fit for your needs?

Stand Alone Policy

Common insurance solution.  Client pays a set premium for a specific  long term care benefit.

Pros
  • Inflation protection available
  • Maximizes long-term care coverage while minimizing premium commitment
  • Tax deductible for business owners
  • Can use HSA to pay premium
Cons
  • Premiums not guaranteed (and historically increased)
  • “Use it or lose it” – no cash value or benefit unless you require long- term care
Example

Hypothetical Policy:

  • Annual Premium: $1300
  • LTC Coverage: $3000 monthly
  • Period of Coverage: 24 months (2 years)

If the client went into a long term care facility, he or she could use their benefits of $3000 monthly for 24 months.

If the client never needed benefits, they would receive no return of premium. Or if the client only used a portion of the benefits, no return of premium would be refunded.

Life Insurance with Long-Term Care Rider

Ideal for clients who also need life insurance.  Maximizes death benefit and provides flexibility for potential long-term care costs.

Pros
  • Largest death benefit coverage
  • Relatively low cost to add rider to life insurance
  • Well suited to pay benefits on a monthly basis
Cons
  • If LTC us used, death benefit is reduced
  • No return of premium available
  • No inflation protection
Example

Hypothetical Policy:

  • Annual Premium: $5,000
  • Life insurance = $400,000
  • Long term care benefits (2% rider) = $8000 monthly for 50 months

If the client went into a long term care facility, he or she could use up to $8000 monthly for their care.

If client passes away before some or all of their benefits their beneficiary receives the unused amount.

Fixed or Indexed Annuity

A popular option for clients needing coverage later in life and/or have potential health concerns disqualifying them from other long-term care products.

Pros
  • limited or no medical underwriting
  • can utilize cash values of existing policies
  • flexible payment options
  • return of premium options available
  • guaranteed premiums (will not increase)
  • long term care and life insurance benefits
  • funds can apply to either spouse’s LTC needs
Cons
  • opportunity cost with use of premium
  • large financial outlay upfront
  • not same tax advantages for business owners
Example

Hypothetical Policy:

  • One time premium: $50,000
  • LTC “pool of benefits” = $150,000
  • Life insurance = $100,000

If the client went into a long term care facility, he or she would have access to a total pool of benefits of $150,000.

If client passes away before using the benefits their beneficiary would receive the death benefit.

Self Funded

Pros
  • Zero up front costs while retaining liquidity
Cons
  • No plan in place
  • Use of personal assets required upon need of long- term care

Financial Discipline. Freedom.

*The cost of long term care insurance will depend on the coverage you choose. Factors in cost include your age, the length of coverage period, your health, the elimination period, and the maximum dollar amount you will be reimbursed for care. The information on this page is intended for informational purposes only; please contact us to discuss your situation and what options are available.

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