We are all living longer, and the harsh reality is, if we need care, it’s going to be expensive…and we are not covered. Costs are soaring, statistically we are living longer and most of us are going to need care at some point in our lives. Medicare and your health insurance do not cover long-term care services. You will be faced with self-insuring to pay costs and liquidating or selling assets, all while ensuring you leave enough assets and income for future care of a surviving spouse. It can be a daunting challenge.
Well, the solutions have changed. No longer is traditional long-term care insurance the only answer.
Traditional LTC insurance provides the lowest premium with comprehensive benefits and features. However underwriting may be more challenging and premiums may increase over time. Additionally, you may not use your benefit.
Hybrid Products combine life insurance with LTC insurance. You receive a benefit either through use of LTC services, or a death benefit. Underwriting may be less restrictive, so it could be easier to qualify. Premiums are guaranteed not to increase and there is a cash value if the policy is cancelled. However, some policies require a single premium ($50,000 minimum) and you may be able to find lower premiums if you purchase life insurance and LTC coverage separately.
Short Term Care is insurance to pay for care of up to a maximum of one year. It can be an attractive cost-effective alternative to traditional LTC insurance. And the underwriting process tends to be less restrictive offering a solution to individuals with pre-existing conditions. However, the premiums for these policies may increase over time. And you may find that you utilize your benefit and still need care, thereby requiring self-pay or spend down to qualify for government assistance through Medicaid.
All these options are viable and beneficial in certain situations. There is no perfect solution that fits all situations. Education and consultation with a long-term care specialist is the key to helping you find which solution is best for you and your family.
© 2017 Becky Wehrli
For more information about Long-Term Care Insurance
Contact Becky Wehrli 503-758-5725 or info@BeckyLTC.com