LONG-TERM CARE OPTIONS

LONG-TERM CARE INSURANCE

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Why No One Can Afford 

Long-Term Care Insurance ; 

And - What to Use Instead!


Long-term care insurance is coverage that will pay for assisted living, nursing home care or home health care in the event you are unable to care for yourself because of a chronic condition or disability.

However, if you bought one of the earliest policies on the market, sold in the 1990s, you may find you can no longer afford premiums and you may be at risk of losing coverage at an age when you need it most. If you apply to purchase a policy now, you may find it unaffordable.


Currently, 70% of long-term care policy holders file claims on their policies. 

In comparison, home insurance and auto insurance policies which have a 7% and 10% claims rate, respectively. 


Do Not plan on Medicare to pay for nursing home, assisted living, or ongoing home health care. Medicare benefits for that type of care are typically only available after a hospitalization or injury and for a limited duration. While Medicare isn't an option, here are three good alternatives and one ugly one.




GOOD OPTIONS

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SHORT-TERM CARE INSURANCE 

These plans are similar to long-term care insurance policies, but benefits are typically capped at one year. Not only are they less expensive, but they may also be available to older seniors or those who aren't otherwise eligible for long-term coverage.


LONG-TERM CARE INSURANCE

Some life insurance policies now offer benefits to cover long-term care. Pacific Life’s “hybrid” policy includes, at no cost, 

a long-term care feature within a 

Universal Life Insurance Policy. 

It’s sort of like a Pay as you Go Plan.


Plans are like a Long-Term Care Policy with a Life Insurance Policy. If you need long-term care, prior to your death; the death benefit of the policy can be accessed early to pay for your long-term care. 


For Pacific Life Plans, those who qualify for long-term care can receive 2% or 4% of 

their death benefit every month until the death benefit is exhausted. 


If the long-term care option is never used, the death benefit will be paid, 

like an insurance policy – tax-free, 

to the insured’s beneficiary.



ANOTHER GOOD OPTION

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LONG-TERM CARE ANNUITIES 


Long-term care annuities are a frequently overlooked option for covering home health, assisted living, and nursing home care costs. 


These annuities require a hefty upfront payment, but if you need long-term care, your overall cost may be lower than what you'd spend on insurance premiums. 


However, don't expect much in the way of interest as they often don't compare to the return found on other investments. 

THE UGLY OPTION

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MEDICAID


When all other options have been exhausted and a person's income and assets have been depleted, the government will step in to pay for care. Medicaid will not pay for assisted living, but it will cover nursing home care and many states also pay for home health care services for eligible people. 


However, states are required by the federal government to recover the costs of long-term care from estates whenever possible. That means, for example, if a parent's home is sold after his or her death, the proceeds could go to the state instead of the heirs.

PLANS ARE OFFERED BY AMERICAN SENIOR BENEFITS

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If you don't think you can afford long-term care insurance, there are options. 


For an alternative way to protect yourself, your family, and your legacy;


Contact Kobey Liles  (972) 740-2658

Or

Email - Brad Raschke  brad.raschke@advocatefp.com