Long Term Care Solutions

The threat of how you are going to pay for long term care expenses is quite real.  People are living longer and costs are continually rising. Planning for those future expenditures is a necessity.  Long term care is expensive and you can’t rely on Medicaid.  Today and in the future you will need to be either very rich, very poor, or insured.  Being mindful and pre-planning is best so that your long term care needs will be taken care of in dignity and without becoming a burden on your children or society.

8 Ways to Manage Risk

1. Self-Funding

Long-term care services are expensive and not generally covered by health insurance, Medicare or Medicare supplemental insurance. How much of the daily, monthly, or yearly costs are you able to manage and for how long? You should carefully analyze whether you have sufficient home equity combined with savings and investments dedicated to covering lon-term care expenses. A life settlement from an unneeded or expensive life insurance policy could provide funds for a lifecare benefit. Get your policy evaluated.

2. Traditional Long Term Care Insurance

Long term care insurance can help pay for the financial assistance you might need should you become ill or disabled in the future. This type of insurance has been around for a long time. Plans have greatly improved over the years offering more benefits and better coverage. Most people who need long term care are older but younger individuals may also need protection. Policies today are flexible, including options for choosing elimination periods, benefit amounts, inflation protection and many more available options.

3. Hybrid Policies (Linked Benefits)

Hybrid or Linked Benefit  Long Term Care policies have the advantage of using a traditional permanent insurance policy or annuity combined with a long term care rider.  These policies provide coverage for long term care while preserving money to be distributed to your heirs upon death.

4. Partnership Programs

Most states, in order to help make long term care insurance more affordable, have teamed with the insurance industry to provide long term care coverage while preserving assets that otherwise may be counted if one applies for Medicaid.  It is usually a dollar for dollar asset protection.  ie: If you have a $300,000 long term care benefit, Medicaid allows you, not only to protect the normal state limit, but allows you to protect an additional $300,000.

5. 1035 Exchanges

The Pension Protection Act, which took effect in 2010, allows individuals to complete a “like-kind” exchange from an insurance policy or annuity directly into a qualified long term care policy.   A 1035 exchange not only a defers the gains made in an insurance policy or annuity, but permanently avoids them., and uses those gains pre-tax to fund long term care insurance.

6. Single Premium

A Long Term Care Policy that combines permanent life insurance that has an accelerated death benefit that will pay for long term care costs if needed.  It guarantees that your premiums will not be wasted if you never use your long term care benefits. These policies involve a single lump sum payment that will protect assets, provide tax free benefits to you and your heirs and comes with a money back guarantee should you change your mind.

7. Short Term Care

A Short-Term Care (STCi) policy provides coverage for a year or less.  49% of long term care claims are for one year or less.  This is a cost effective way of obtaining a limited amount of long term coverage that may prove adequate.  Could be better than no coverage.

8. Funeral Expense Coverage

A Final Expense is basic term-life insurance policy designed to last the remainder of the insured person’s life and covers burial costs, small debts and other financial obligations upon death of the policy holder. The beneficiary is responsible for paying the funeral costs from the proceeds. A Funeral Trust is a unique product that combines the protection of life insurance with the security of an irrevocable trust. It guarantees that funeral costs will be a covered expense upon death of the insured.