According to estimates, six out of every ten Americans who reach age 65 may need long term care at some point in their lives. Many people are surprised to learn that very few, if any, long term care services are covered by Medicare. While the average nursing home stay is about 2.6 years, 10% of nursing home stays are five years or more, according to Barron’s.
Long term care insurance can help you preserve the savings and assets you’ve worked a lifetime to build. In today’s market there are a myriad of plans, choices, features available from leading carriers. Traditional Long Term Care policies or hybrid concepts that are asset or life insurance based. Let us help you make sense of it all. We can simplify the process and provide you with a cost-effective solution to help you protect your assets and freedom of choice.
A word about Hybrid Long Term Care Insurance Policies
Hybrid policies work in several ways. One policy links long term care to a life insurance policy. With this plan, the insured deposits a set premium into a policy. Depending on the age, gender and health of the client- an immediate pool of money is created for long term care. At the same time, an immediate death benefit is created in life insurance. The premium deposited is fully refundable at any time (less benefits received). The logic to these policies is that whether or not you use the long term care benefits, the policy pays off.
Another type of hybrid policy is a traditional Universal Life insurance contract with a Long Term Care rider. Instead of a single premium deposit, premiums are paid annually This type of policy is best for those who have both a life insurance need and are concerned about funding a long term care need.