4 Options of covering expenses

Self Funding:

Pros:

No premiums to pay
No application

Cons:

Exposed to major financial risk and potential burden to family

Traditional LTC:

Pros:

Lowest cost upfront & best leveraging
Protects assets from Medicaid spend down
Many policy benefits and possible tax deductions

Cons:

If LTC is not needed – no benefits paid

Hybrid Option:

Pros:

Leverages dollars for LTC
Risk management tool

Cons:

First part of claim is self-funded
No Partnership protection or tax deductions

Back-up Plans:

There are options for those who either failed to plan or do not qualify due to health concerns. These options typically do not leverage nearly as well as Traditional or Hybrid options. Below is a list of these different options:

Short Term Care (STC)
Guaranteed Issue LTC SPIA
Life Settlements
Deferred Immediate Annuity (DIA)
Reverse Mortgages

4 Options of covering expenses

4 Options of covering expenses

Self Funding:

Pros:

No premiums to pay

No application

Cons:

Exposed to major financial risk and potential burden to family

Traditional LTC:

Pros:

Lowest cost upfront & best leveraging

Protects assets from Medicaid spend down

Many policy benefits and possible tax deductions

Cons:

If LTC is not needed – no benefits paid

Hybrid Option:

Pros:

Leverages dollars for LTC

Risk management tool

Cons:

First part of claim is self-funded

No Partnership protection or tax deductions

Back-up Plans:

Short Term Care (STC)

Guaranteed Issue LTC SPIA

Life Settlements

Deferred Immediate Annuity (DIA)

Reverse Mortgages