Long Term Care Plans

Long term care insurance can protect your retirement savings, allow you to receive care at home, and ease the burden on your family members. With costs rising for nursing home care, assisted living facilities, and in-home care providers, a few short years of needing long-term care services can wipe out a life time of savings.

As a part of your financial planning process, it’s important to understand the potential impact that needing long-term care may have on your assets, your family, and you future. There are a number of long term care plans available from a number of carriers with even more products. When it comes to determining which long term care plan is right for you it is important to work with an independent, knowledgeable advisor about the benefits, options, and types of plans available. The following information will allow you to determine what is important to you and your long term care goals in order to develop a long term care plan that is most appropriate for your situation.

Step One: Make your choices

This allows you to structure an insurance plan that fits your needs and your budget.

  • Choose a daily or monthly benefit amount: $100 or more per day.
  • Choose an elimination period (or waiting period): 30 days, 60 days, 90 days, 180 days, or 360 days.
  • Choose how long you would like to receive benefits: from 2 year to and unlimited or lifetime benefit.

Step Two: Determine your maximum benefit amount

This is the total amount of dollars available to you under your policy.

Multiply the daily benefit amount times the benefit multiplier times 365 days. For example, $100 (daily benefit amount) x 5 years (benefit multiplier) x 365 (days per year) = $182,500 (maximum benefit amount).

Your policy will not have a maximum benefit amount if you select the unlimited (lifetime) benefit multiplier.

Step Three: Choose your optional benefits

This allows you to add benefits to your insurance plan that will enhance your coverage.

Inflation Protection: Increases your daily benefit amount to keep pace with the rising cost of long-term care services. You have the choice of four options.

These increases in benefits will not be determined by the actual amount of future inflation. The actual increases in benefits under your policy may be greater or less than the amount of inflation:

  • Guaranteed purchase option (GPO): As long as you are not receiving benefits, you have the option to increase your original daily benefit amount and maximum benefit amount typically by 10 percent every two or three years until age 80, or for a maximum of 20 years, whichever occurs first. Each time you exercise this option, your premium will increase based on your current age.

You may decline the offer to increase coverage any time it is made. Once you have declined this offer two consecutive times, the benefit terminates and no further offers will be made.

  • Simple Interest: Automatically increases your original daily benefit amount and maximum benefit amount by the chosen percentage (typically 3% or 5%) each year.
  • Compound Interest: Automatically increases your current daily benefit amount and maximum benefit amount by the chose percentage (typically 3% or 5%) each year, similar to compound interest in a bank.

Premium Payment: Your premium can be paid on a regular basis throughout the life of the policy. Or two additional options are available that allow you to pay premiums for a set period of time, after which no further premiums are due. These additional options include:

  • 10-year premium payment option:* Allows you to pay premiums for 10 years.
  • To-age-65 premium payment option:* Allows you to pay premiums until you reach the age of 65.

Nonforfeiture Benefit: Should you stop paying premiums after your policy has been in effect for ten years or longer, this option provides that your policy will not terminate but will continue with a reduced maximum benefit amount. The maximum benefit amount will be the greater of one hundred percent of the sum of all premiums paid or ninety times your Nursing Facility Maximum Daily Benefit in effect at the time of lapse.

Spouse Waiver of Premium and Survivorship Benefit: Adding this optional benefit to your insurance plan and to the same policy form for your spouse’s insurance plan means that when one spouse’s premium is waived, the premium for the other spouse also is waived. It also means that if one spouse dies after both policies having this benefit have been in effect for 10 years, no further premiums are due from the surviving spouse.

Making the Right Choices

You have lots of things to consider when it comes to designing long-term care insurance that’s right for you. A Long Term Care Insurance professional can help you evaluate your situation and tailor coverage to meet your needs. These are some of the choices you have:

Daily or Monthly benefit amount: The maximum dollar amount your policy will reimburse each day or month. You have a range of dollar amounts from which to choose.

Elimination period: The period of time you will wait before you begin receiving benefits. You can choose to receive benefits immediately or after a waiting period of up to 90 days.

Benefit multiplier: A time period used to calculate your maximum benefit amount. It is not intended to represent the time for which benefits will be reimbursable.

Maximum benefit amount: The total amount of benefits you are entitled to receive over the life of your policy. To determine the maximum benefit amount, multiply your daily benefit amount times the benefit multiplier times 365 days.

We are committed to making the acquisition of long term care insurance as simple as possible. Our focus is based on your needs, and designing a plan that not only satisfies your needs, but fits your budget. Request a complimentary long term care insurance quote or contact us at (877) 579-9574 to speak with a long term care insurance professional.