LONG TERM CARE COVERAGE
Life insurance with living benefits for long-term and critical care needs.

LONG TERM CARE COVERAGE

Life insurance with living benefits for long-term and critical care needs.

Get Living Benefits For Long Term Care Needs Through Life Insurance

Most of us know of someone who faced financial difficulty when having to pay for the medical care required due to a long-term illness. Cancer, stroke, heart attack, dementia, accidents or perhaps just getting old are some of the more common reasons a person might be required to have round the clock medical care.

My own father developed Alzheimer’s Disease in his late 70’s and was faced with having to pay the memory care facility over $8,500 per month, but his pension was only $5,500 per month. He had some savings to make up the difference, but we simply didn’t know if his savings would be enough for what could end up being many years of care.

This is not an uncommon problem. The cost can vary, but the average cost for private care is close to $8000-9000 per month. Many of us are under the mistaken belief that Medicare, Tricare, Social Security or private health insurance will pay for long term care. Unfortunately, the family is often left responsible to bear the financial burden.

Is there a way to have these expenses insured where the insurance company pays the bills? Absolutely, yes!

WHAT QUALIFIES AS LONG TERM CARE?

Services that include medical and non-medical care for people with a chronic illness or disability. Long-term care helps meet health or personal needs. Most long-term care services assists people with Activities of Daily Living, such as dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, or in a facility. For purposes of Medicaid eligibility and payment, long-term care services are those provided to an individual who requires a level of care equivalent to that received in a nursing facility. (Source: LongTermCare.gov)

WHAT ARE LIVING BENEFITS?

Living benefits allow you to access your own life insurance death benefit while still living, if your condition is eligible. They have been around as riders for decades but recent tax code regulations allow for life insurance to build cash value that can be dispersed tax-free for qualifying events. With an IUL, you get the death benefit PLUS the cash value benefit. Not to mention, peace of mind knowing you and/or your family will have the funds needed to pay for quality long term care in a setting of your choosing.

7 out of 10 people

aged 65 or older will

need LTC help.¹

52% of long-term care

expenses are paid

out-of-pocket.²

Average yearly cost

for private room in a

nursing home is $108,405.³

Who Needs Long Term Care?

Every day until 2030, 10,000 “Baby Boomers” will reach the age of 65. (Genworth, 2022)
Seniors aged 65 have a nearly 70% chance of requiring long-term care services in the future.

How Much Care Will You Need?

The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics (all are “on average”) you should consider:

Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years
Women need care longer (3.7 years) than men (2.2 years)
One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years

Long Term Care (LTC) Options

Traditional Long Term Care (LTC) Plan

One option is a traditional Long Term Care (LTC) plan, which pays a daily, weekly or monthly benefit when called upon. Like auto or homeowner policies, the LTC policy “stands alone” and is independent of any other coverage. Also like these other types of coverage, if one doesn’t “use it, you lose it”. In other words, there is no benefit received for the (somewhat costly) premium you spent if care is never needed. This money is retained by the insurance carrier and can amount to perhaps as much as $100,000…money that could have gone to the family as an inheritance.

Hybrid LTC Plan

A relatively new option is a Hybrid LTC plan that addresses this problem of lost premiums. Here’s how it works: say a person deposits $100,000 with the insurance carrier, who then multiplies this sum by a factor of three, leveraging up to $300,000 to pay for assisted-living or skilled-nursing care. While with the insurance carrier, the $100,00 earns interest. If the coverage is never needed, the $100,000 plus your interest is returned to the family as a death benefit. Hybrid LTC plans allow for periodic premium payments or a lump sum payment option, and “if you don’t use it, you won’t lose it”.

Permanent Life Policy

Another option is a permanent life policy that allows for the death benefit to be tapped for long-term and/or critical care needs while the insured person is alive. There is usually no additional cost for this benefit, and it is paid to the insured, not the medical facility, on a 100% tax-free basis. Not all insurance carriers provide this benefit, but It’s important for you to know that all of our insurance carriers include this benefit in their policies.

As you can see, you have options in regards to Long Term Care insurance. We all pray that we will never need long term care, but the reality is that some of us will need this type of expensive care at some point down the road. The money needed to pay for this can come from savings or an insurance policy. If there is not enough money held in savings, it can impact the entire family, not just the patient.

Ready to Learn More About Long Term Care Opportunities?

Schedule a no obligation twenty-minute introductory meeting and let Don show you how life insurance can do more than pay a death benefit or provide cash value. Living benefits can fund qualifying events that need long term care, and a host of other expenses, through a customized plan catered to your specific needs.

Fill out our our initial questionnaire so we can gather the information needed for an accurate quote. Once we connect, we would love to send you a FREE copy of one of the bestselling books on tax-free living benefits available through specific life insurance policies when structured correctly.

Schedule your complimentary review today!