Long Term Care Insurance
Are You Prepared?
The single greatest threat to your financial security
We are living longer than our parents did. As we age, we are more likely to suffer from long term debilitating ailments and diseases such as Alzheimer’s, Parkinson’s or Strokes that require assistance.
70%
“70% of Americans over 65 will face a long-term care illness or injury that can easily exceed $100,000 a year!”
US Dept. of Health and Human Services
83%
The cost to loved ones is high. “83% of help is provided by family, friends and unpaid caregivers.”
Caregivers Omnibus Study, 2017
157k
“Remember, the risk of needing care is very high and the cost of a nursing home in Connecticut exceeds $157,000 a year!”
State of CT OPM, 2020
You may never need care,
but what if you did?
Keep in mind, every plan has a cost. If you are not planning, there is a cost. Usually, plans by default are much more expensive than plans by design.
Who Pays?
There are only three ways to pay for long term care services
Medicare & Health Insurance plans were never designed to pay for long term care services.
*Medicaid is the Nation’s largest payor of LTC services
The rules are complicated.
Any gifts, establishment of trusts, or transfers of assets within 5 years of your request can make you ineligible for Medicaid assistance.
The State can dictate which facility you will go to.
Why LTC Insurance?
Six reasons why you need Long Term Care protection.
After working a lifetime to plan for a secure future, millions of Americans have underestimated the serious consequences of not planning for an illness or injury requiring Long Term Care.
Whether you realize it or not, you are creating a plan. You can either remain in control of that plan, or give up control to others or to the State.
Solutions
There are three primary types of insurance solutions.
Life Insurance
w/ Living Benefit
Riders
Marketers in the industry are calling this the “new-type of life insurance”. A life insurance policy which not only pays in the event of death, but allows you to access the death benefit face amount to pay for long-term care. For example, a $500,000 policy would enable you to access the full $500,000 to pay for long-term care. There is always the guarantee of a pay-out and there can never be a rate increase.
Hybrids
An increasingly popular approach and a smarter alternative to self-insuring. Plans cover all possible life scenarios: a robust LTC benefit or...a death benefit or...a money back guarantee. There is always the guarantee of a pay-out and there can never be a rate increase. Annuities with LTC benefits are also available.
Traditional
Long Term
Care
Typically the best way to leverage your premium dollar and maximize your LTC benefits. Connecticut Partnership and National Partnership plans provide Dollar-for-Dollar Asset Protection. Inexpensive Short-Term Care plans buy you time to focus on your care needs while avoiding immediate liquidation of savings.
Rate increases: Incorrect actuarial assumptions on older LTC policies sold in the 1990’s through approximately 2010 led to underpriced policies resulting in rate increases for most of these policyholders.
You keep total flexibility and control
Home, Community and Facility Care
Single pay options
Shared benefits for couples
Return of premium options
Choose your own caregivers
Income Tax favorable options
