Things to consider when purchasing LTC
A LTC plan helps protect your spouse, family, and financial plan from a potential devastating event that would have a negative impact on the ones you love. A LTC plan puts your family in a position of managing care instead of providing your care. It also ensures the plan of care you want. Download The 2018 Consumer Guide to LTC for more info.
Statistically you will hear that 69-70% of people will need long term care in their lifetime. While statistically true this is not the right question. The correct question is that should you need long term care are you ok with the devastating consequences that will impact your spouse and family should you not have a plan in place.
To learn more download The 2018 Consumer Guide to LTC.
There is No One solution for everyone. Hybrids and Traditional LTC have their own specific advantages and differences, and they fit different people. The key is that some coverage is better than no coverage at all. Hybrids are more of a risk mitigation tool and Traditional LTC is primarily an income protection tool. We will help guide you to a decision that is right for you!
We believe strongly in not over insuring people and finding the right benefit for them. Customizing the benefit selection to the client helps provide them the proper amount of coverage while keeping costs low as they are not paying for benefits they will not likely need. We use the simple formula below to determine the monthly benefit that is ideal for the client:
*Cost of Care (COC) – **Estimated Monthly Income (EMI) = Ideal Monthly Benefit
*Check using Genworth’s Cost of Care Map (https://www.genworth.com/aging- and-you/finances/cost-of-care.html)
**Available monthly income that could be put towards care (Ex. Social Security,
NOTE: Add 3% compound onto policy to keep up with inflation
Partnership Protection is about the States Partnership Qualified polices that protect your assets from Medicaid spenddown. Medicaid will pay for long term care services but only after you spend down in assets to a low level (see your states info on these levels). States are even putting liens on the family residence and requiring being named remainder beneficiary on certain annuities to recover costs associated with long term care services. Partnership protection can be very important, especially for those having between $200k and $600k in assets. Partnership protection is only available on Traditional LTC policies.
The three-year benefit is the most commonly sold policy out there. A three-year benefit covers most claims however you should look at your family history. Those with a family history of Alzheimer’s or Dementia should seriously consider a longer benefit period as genetics are very good indicators for the future.
Hands down the best rider available for couples and highly recommended. Provides an extension of care dollars should you or your spouse exceed your personal allotment. Ask your agent to show you how this works.
The elimination period is the length of time you will need to cover care services prior to your policy paying out, like a car insurance deductible when you have an accident. The industry standard is 90 days. There are options to shorten this such as Zero Day Home Health Care (HHC) riders or the purchase of a 100-day Short Term Care (STC) policy to essentially eliminate the elimination period.