Product Options

Product Options for Long Term Care

Below you will find a simple table which outlines various options to pay for long term care. Most are insurance based; one is a membership. The table looks at each option according to the 3 factors of age, health and financial situation.

If your age is… If your health is… If your financial situation is… Recommended type of coverage
Late 40’s to early 60’s Excellent to good health Investable assets of $100K+ Traditional Long Term Care Insurance
Wide Options (20’s-80’s) Average to good health Investable assets of $400K+ Linked Benefit Insurance
Wide Options
(Age 18-85)
OK health.Easier underwriting than traditional LTC insurance Investable assets of $100K+ Short Term Care Insurance
Super-Seniors
(Age 75-99)
Designed for people already receiving care,location of care doesn’t matter Self-insuring for LTC Annuity with monthly payments, guaranteed for life
Super-Seniors
(Age 70+)
Health deteriorating Self-insuring option Not insurance; Pre-Paid Home Care

A couple of things to keep in mind….

  1. Your age and health are important factors because insurance is medically underwritten. If you wait too long and your health has deteriorated, it is harder to get insurance no matter how much you are willing to pay.
  2. The financial situation information is general but provides a guideline. A long term care insurance specialist should be able to assist you further in determining the right path to choose for you. It will depend on your family situation and what you ultimately wish to do with your retirement funds.
  3. Most people want to know how much any one of these options cost. The answer is not straightforward so the plan that works for your neighbor may have a different cost than the same plan for you. Or the plan that works for your neighbor may not work for you. That is why you need to speak with a specialist.

Comparison of Product Options According to Market Focus and Product Features

In the table below, you will find a comparison across all 5 options of who the typical market is for the product and some of the top-line features.

Traditional LTC insurance
Appeals to: Most upper and middle income boomersFeatures:

  • Wide array of ways to customize plan
  • Tax deductible for business owners
  • Partnership protection from Medicaid spend down
Linked Benefit Insurance

Whole life insurance or annuity linked with a LTC rider

Appeals to: Wealthier clients who don’t like the “use it or lose it” aspect of traditional long term care insurance.Usually more expensive than traditional LTC insurance

Features:

  • Lifetime coverage still available
  • Not as many features as traditional LTC insurance
  • No premium increase once you purchase
Short Term Care Insurance
Appeals to:

  • People who anticipate needing recovery from traumatic medical event requiring short term care
  • Onset of chronic condition needing short or long term care
  • Customers who can be satisfied with short term care in exchange for lower premium
  • Customers who cannot health qualify – simplified underwriting

Features:

  • Shorter elimination periods available
  • Shorter benefit period (maximum is 1 year)
  • Feature available to restore benefits one time
  • Very affordable for younger clients
Single Premium Annuity
Appeals to: People who are already in care and afraid of running out of money.

Features:

  • Annuity with enhanced and guaranteed income for people already receiving care
  • Fully underwritten and quick turnaround
  • All ages and health issues are insurable
Non-insurance Prepaid Home Care
Appeals to: People who anticipate the need for home care but cannot health-qualify for insurance.

Features:

  • Discounted home care hours following 6 month waiting period
  • Not insurance so no underwriting
  • Only useful for at home care

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