Long Term Care

Over half of Americans turning 65 today will need some form of Long Term Care. And without LTC insurance, this already difficult time becomes a tremendous burden to clients, spouses, and family.

Medicare does not pay for custodial care. To qualify for nursing home care, it must be determined to be medically necessary, and it must follow a hospital stay. Coverage is limited to 100 days, with the last 80 days subject to a high copay from the beneficiary.

There are several types of insurance products that can help you prepare for Long Term Care needs. Below is a simple list with some of the pros and cons to each.

Please call us for more detailed information and we can put together some options that fit with your client’s need.

(901) 758-8886

Traditional Long Term Care policies.

• This is usually the least expensive option. But premium is not guaranteed, and can change depending on the claims history of the carrier. Usually only offered as a lifetime premium.
• “Use it or Lose it”. Normally no or very limited death benefit or cash value.’
• Usually full underwriting required.

“Hybrid” products

• Long Term Care on a life insurance chassis (either whole life or universal life).
• Rates are guaranteed, and the product can be short paid (single, 5, pay, pay to 65, etc).
• Depending on the product, can have return of premium and residual death benefits.
• Minimized death benefit to maximize long term care benefits
• Underwriting is simplified. Most carriers require a phone or electronic
  interview. Some carriers will order APS if required, or an exam. This can potentially be a benefit. We have had several clients declined by interview only carriers, and later approved based on more detailed information provided by the APS and exam.

Riders

• Most universal life and whole life products offer the option for a long term care or chronic illness rider.
• Long Term Care benefits are a percentage of the death benefit, so the LTC benefit usually starts higher than the hybrid product.
• No inflation rider.
• Underwriting can be either simplified or full, depending on the client’s health.