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|
|OK health.Easier underwriting than traditional LTC insurance||Investable assets of $100K+||Short Term Care Insurance|
|Designed for people already receiving care,location of care doesn’t matter||Self-insuring for LTC||Annuity with monthly payments, guaranteed for life|
|Health deteriorating||Self-insuring option||Not insurance; Pre-Paid Home Care|
A couple of things to keep in mind….
- 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.
- 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.
- 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: