Because of age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, toileting or continence, and/or transferring. These six actions are called Activities of Daily Living–sometimes referred to as ADLs. In general, if you can’t do two or more of these activities, or if you have a cognitive impairment, you are said to need “long-term care.

Long Term Care planning is a key aspect of any retirement plan, yet it’s often overlooked. Having a Long Term Care insurance plan will create an income stream to help pay for care, should it be in your home, and assisted living facility or even worse, a nursing home. 

According to the U.S. Department of Health and Human Services, 70% of people turning age 65 can expect to use some form of long-term care during their lives.

Today, there are more options than ever before to help fund the need for care. These options include but are not limited to, Long Term Care Insurance, Short Term Care insurance, Life Insurance with Long Term Care insurance riders,  and Annuities with Long Term Care benefits. With these planning options, we can help you create a safety net around your current financial plan and  help you protect what you have worked so hard for.

 

Hybrid Long Term Care Insurance Policies:

-Life Insurance with a true long term care rider:

Universal or Whole life insurance and long term care insurance together in a single flexible life insurance policy. The "what if I never use it" objection disappears because you have coverage regardless of what the future holds.  No matter what, we've got you covered!

- Use No LTC Benefits - Beneficiaries receive 100% of the Death Benefit
- Use Some LTC Benefits - Beneficiaries receive a Partial Death Benefit
- Use 100% of LTC Benefits - Beneficiaries receive a small Residual Death Benefit

 

-Life Insurance with an accelerated death benefit for long term care 

Accelerated death benefits attached to a life insurance policy allow the policy owner to accelerate a portion of the death benefit in order to use the benefit while still living. There can be several triggers for this to occur and will vary by carrier, Typical triggers are a diagnosis of a chronic and terminal illness for the insured. For those that qualify, there is no additional premium for these benefit. Availability varies by state and product by carrier. 

 

-Fixed Annuities with Long-Term Care Benefits

This solution can provide LTC benefits through the use of a single-premium deferred annuity. You can earn tax-deferred interest each year and receive monthly benefits for qualifyed home health care, assisted living and nursing home care expenses. With the Pension Protection Act of 2010 you can now use those tax-deferred dollars to pay for qualified long-term care expenses.