Long Term Care Insurance
Get a Quote »Expenses associated with long term care can amount to hundreds of thousands of dollars over time. Long term care insurance (LTCi) will help cover these extraordinary costs while also providing peace of mind.
A suitable policy will protect you, your family, and your heirs in the event that extended care is needed. Policies will pay benefits for expenses associated with a nursing home, assisted living facility, adult day care or care administered in your own home.
Long Term Care Insurance Quotes
Our independent agency offers traditional and hybrid policies from Alliance, Assurity, Aviva, Genworth, Golden Rule, Great American Life, John Hancock, Lincoln Financial, Mass Mutual, Prudential, Mutual of Omaha, One America and others.
Individuals, couples, or employer groups can all purchase this coverage in order to account for future medical expenses. It is important to research your options while you are younger and in reasonably good health to qualify for the best rates.
Purchasing And Underwriting LTC Coverage
Purchasing a nursing home policy can be a difficult decision without the right information. There are several factors to consider when making the choice of whether or not to buy.
Health concerns and family history are very important. For example, many consumers are interested in LTC insurance due to a family history of chronic illness.
Others become concerned upon the early onset of their own health issues. It is important to note that if your health is already significantly in decline, many companies will not underwrite you for LTC coverage. In some cases, a hybrid insurance policy can be a good alternative.
Your personal wealth is also important. That is to say, what is the size of your attachable estate? Do you want to leave anything behind for your family? Does your spouse have enough income in the event that your assets ends up paying for an extended stay? How much insurance can you afford? There are many other questions to ask; these are but a few essential examples.
Long term care insurance offers an answer to many of the concerns listed above. Policies are designed to offer a predetermined monetary benefit for a chosen number of years after a short waiting period has been met, usually between 0-100 days.
Consumers often choose a longer waiting period as Medicare can cover up to 100 days for certain types of care, but not beyond that. Medicaid, on the other hand, will only pay for benefits once you have depleted the majority of your assets.
Hybrid Annuity And Linked Life Insurance Plans
The newest entrants into the LTCi marketplace tether benefits to life and annuity policies. These plans are quickly growing in popularity as they offer living benefits to the insured and his or her family in the event care is unneeded.
Typically these plans are purchased with a lump sum deposit from an existing investment like a bank CD, old annuity, or paid up life policy. The policies leverage the invested dollars several times over in the event long term care is needed.
In this way, policyholders have a safe and insured asset that increases in value each year, but also one that will pay benefits several times over the initial investment. Additionally, underwriting a hybrid LTC life or annuity policy is usually easier than with traditional coverage. There are several hybrid plans available and we can help find one that is most suitable for your needs.
Long Term Care Partnership Programs
In recent years, several new types of LTCi products have been developed that are more advantageous to the consumer including partnership programs. If a partnership qualified plan is purchased, then the state will preserve matching benefit amounts in your estate once the policy benefits are exhausted.
In this case, the insured would not need to spend down all of the assets in their estate if their policy benefits had been depleted. For example, if you purchase $200,000 in potential benefits, then the state would allow you to shelter a matching $200,000 that would be free from attachment.
As Medicaid benefits cut into fiscal budgets, states are offering partnership plans to encourage the purchase of LTC insurance. This program (where offered) promotes LTCI as the more coverage that is purchased, the smaller the attachable estate.
LTC Insurance Coverage Offers Safety And Flexibility
Newer LTCi policies are much more flexible than those of just a few years ago. The advent of hybrid coverage and several new benefit packages allow for choices that can account for most situations.
Additionally, some policies offer a “return of premium” option to consumers after several years of payments, while others allow you to share your policy credits with your spouse if he or she ultimately needs all of the combined benefit.
Many LTCi products will pay for care provided in your own home, an assisted living facility or within an adult day care center, as well as a nursing home setting. A family member who serves as your primary care giver within your own home may also qualify for payment under some LTCi provisions.
Hyers and Associates is a full service, independent insurance agnecy specializing in traditional, hybrid and partnership long term care insurance policies. Contact us today to compare quotes and illustrations while also discussing all of your options.
You can also refer to our article on Long Term Care Examples – Traditional and Hybrid for more information.