Long Term protection for quality of life care.

Long Term Care Insurance

Retirees today are living longer than ever before.  As we age, the likelihood we will need some type of medical or personal care increases. One in every two individuals turning age 65 today will need the coverage of a long-term care solution during their lifetime.  But aging is not the only reason to plan for long-term care; it's there for you if a chronic illness or disabling injury prevents you from living on your own or properly caring for yourself--no matter how old you are or how long care is needed.

Long-term care is comprised of more than nursing home care. It can also involve care provided by assisted living facilities, adult day care centers, hospice facilities, and skilled nurses or home health aides in your home. Long-term care helps with day-to-day tasks like bathing, eating, getting dressed, getting in and out of bed, as well as assisting those who have severe cognitive impairment as a result of Alzheimer’s disease or other conditions. According to the Alzheimer’s Association, 1 in 3 over the age of 65 will die from Alzheimer’s disease or dementia.

Contrary to common belief, health plans such as Medicare and Medicaid don’t cover all long-term care expenses. And Social Security or savings may not provide enough to cover unexpected long-term costs.  The average cost of a home health aide in Georgia is just shy of $47,000 per year, while the cost of a private room in a nursing home is over $79,000 annually.

Whether you require home health care, nursing home care, or something in between, planning ahead with long-term care insurance may help provide the protection for financial security, greater independence, and preserve your family’s quality of life by reducing the expense and burden of long-term care.  You can continue to live your life as comfortably and with as much dignity as possible, without sacrificing the income, investments, and savings you have worked so hard for.

It is important to understand the types of policies available in the marketplace and the differences between Traditional Long Term Care Insurance and the newer Hybrid Asset-based Long Term Care Insurance products to determine which is best. 

Traditional Long Term Care Insurance

With a traditional stand-alone policy, you elect your benefits at the outset.  Your policy can be custom-tailored to suit your needs.  Your premium is guaranteed renewable.  Premiums are typically paid on a monthly, quarterly, semi-annual or annual basis.  As long as you pay your premium, you will have coverage in-force.

Long term care insurance policies are similar to your auto insurance, homeowners insurance, and health insurance.  There is no cash value.  As with your auto or homeowners insurance, if you do not make a claim on your policy you will not receive any benefits.

Because this traditional insurance utilizes a "pay-as-you-go" approach your premium is typically affordable and attainable.  Most importantly because traditional policies are able to be customized.  You are able to design the policies to account not only for your current needs, but also to account for future inflation costs of medical care.  If inflation protection requirements are met, traditional policies will also offer you Medicaid asset disregard benefits through the State of Georgia's Long Term Care Partnership Program.  However, with this traditional form of long term care insurance your premium may be subject to future rate increases.

Hybrid Asset-based Long Term Care Insurance

Hybrid policies were created in order to give people a cost-effective way of covering themselves for long term care expenses.  Additional planning options for you to consider are "linking" your long term care benefits to additional insurance benefits such as a paid-up life insurance policy or an annuity.

Unlike traditional policies that have a small premium "pay-as-you-go" approach, hybrid linked benefit insurance policies usually are funded with a one-time single premium up-front such as $50,000 or $100,000, or large annual installments over a certain period of years.  Similarly, many hybrid policies also provide you the ability to elect your long term care insurance benefits at the outset.

The appeal of hybrid long term care life insurance policies is that you are guaranteed to receive your premium back should you never need to receive long term care. Also the premiums for these type policies are fixed, and are guaranteed to never be increased.

Hybrid long term care policies will:

• pay for your costs should you receive care
• provide your estate a tax-free life insurance benefit should you not need care
• offer you a 100% money-back guarantee should you change your mind

Hybrid insurance policies may be worthwhile for you to consider if you have liquid assets generally not needed for retirement income that can be easily re-positioned.  Hybrid policies do not offer State Long Term Care Partnership protection.

Receive Independent Unbiased Objective Advise

As an independent agency, LionCrest Insurance Advisors has access to several carriers which will allow us to provide you with unbiased options to structure the best solution for your specific long-term care insurance need.  We will discuss: the costs of various types of care, whether traditional long-term care insurance or if the newer hybrid asset-based long-term care insurance is more appropriate, the estimated cost of a customized policy and all respective options, as well as whether full or partial coverage is needed.  

Determining the type of policy and amount of long term care insurance coverage you need does not have to be difficult.  Let LionCrest Insurance Advisors independent expertise and client-focus help determine your best solutions for Life. Contact us today for a consultation and free quote.