70% of the population who reach age 65 will develop a chronic health condition that requires long term care services according to government estimates. While medical advances have increased longevity, ironically it has resulted in a greater number of people living in a state of compromised health.
Demographic and socio-economic changes have reduced the ability of family members to provide the hands-on-care that was provided in previous generations. It is becoming increasingly necessary for family members to seek paid care for their elderly or chronically ill parents or grandparents.
Long Term Care Insurance can provide the means to ease the burden on family and provide more choices of care for the infirm while preserving assets for spouses and heirs.
Market demands have spurred the introduction of new types of Long Term Care Insurance.
Traditional LTCI is the most flexible with the most options but is pure insurance. ….in other words, premiums are not recoverable if a claim is never made.
Asset Based LTCI
The policy leverages a one-time cash infusion 3 – 6 times for LTCI coverage. For example: a one-time premium of $100,000 might provide you with $300,000 to $600,000 of Long Term Care coverage. If the benefits are not accessed for long term care services, a named beneficiary gets an income-tax free life insurance benefit greater than the initial premium.
People who have cash value life insurance have the option of transferring the cash from that policy to an asset based Long Term Care plan with no tax consequence thus eliminating or reducing an out-of-pocket outlay.
Asset based plans also offer options to refund the premium if there should ever be a change of mind.
Life Insurance with a Chronic Illness Benefit
This type of policy is actually a traditional life insurance product with the ability to advance the death benefit to pay for long term care services if the insured is deemed chronically ill.
Confusing? We can help you evaluate your options, compare solutions and design a plan that meets your needs and budget. If you have health issues, our experience will be invaluable in assisting you in applying to the insurance company that will give you the best chance of acceptance.