4 Options of covering expenses
Self Funding:
Pros:
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No premiums to pay
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No application
Cons:
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Exposed to major financial risk and potential burden to family
Traditional LTC:
Pros:
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Lowest cost upfront & best leveraging
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Protects assets from Medicaid spend down
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Many policy benefits and possible tax deductions
Cons:
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If LTC is not needed – no benefits paid
Hybrid Option:
Pros:
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Leverages dollars for LTC
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Risk management tool
Cons:
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First part of claim is self-funded
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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:
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Short Term Care (STC)
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Guaranteed Issue LTC SPIA
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Life Settlements
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Deferred Immediate Annuity (DIA)
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Reverse Mortgages