Personal Coverage Options
LTC insurance policies are a planning option for individuals who may need to pay for LTC expenses in the future. These policies provide not only payment for care, but also provide control, choice, and financial independence. Qualified LTC insurance policies offer tax-free benefits to cover the costs of a multitude of LTC services in a variety of settings, protecting assets that would otherwise be severely depleted by the cost of care.
We suggest that you speak to one of our representatives to determine if you will qualify for a Hybrid Insurance Solution.
Consider the alternatives to insurance coverage:
The majority of costs associated with chronic conditions that require LTC are not covered by most medical insurance or by government programs such as Medicare or Medicaid.
Medical insurance may provide short-term care coverage for specific medical conditions, but it is not intended to provide long term benefits to cover chronic conditions.
Similar to medical insurance, Medicare is designed to cover acute medical care. In most cases, Medicare will only pay a portion of expenses for the first 100 days of care, and only if acute care is received in a hospital setting.
Medicaid programs are generally designed to provide care for those who would otherwise not be able to afford it. Medicaid requires participants to spend-down most of their assets to qualify for assistance.
Hybrid Long-Term Care Insurance
Hybrid LTC insurance products are an enhanced version of traditional LTC insurance policies, combining the benefits of LTC coverage with the protection of life insurance. This is accomplished through an innovative approach in the policy design.
In a typical hybrid LTC policy, a single premium is used to fund the insurance. Often, the funds for this premium may come from re-positioning a current asset, such as a savings account. If LTC is needed, the policy leverages these assets into LTC benefits that may reach as much as 4-6 times the amount of the initial deposit. If benefits are not exhausted by LTC needs during the life of the insured, the policy provides an income-tax free death benefit to heirs and in some States, the policy may include a return of premium.
The rising cost of LTC requires careful planning to protect assets from the potential for substantial depletion. The unique policy design of hybrid LTC insurance offers a way to obtain this protection, while ensuring that wealth will not be lost if benefits are never needed.
This material is not intended to provide tax, legal, or accounting advice. This information should not be used by any taxpayer for the purpose of avoiding or circumventing IRS rules and regulations. Clients should seek the advice of their professional advisors.