What is LTC Insurance:
An insurance policy that pays some or all costs of nursing home care for qualified insured's. Premiums are based on the age of the applicant and are projected to remain stable for the life of the policy. Premium payments stop when the insured meets the qualifications for long-term care, which include medical necessity, cognitive impairment, and inability to carry out certain activities of daily living. Group policies are available. LTC policies are much more diverse and adaptable than 15-20 years ago. They now include joint and shared policies. There is also coverage for home care and adult day care, as well as skilled care, depending on the policy you purchase.
There are many types of LTC insurance including; joint, shared, individual, group, integrated into a single premium annuity, combined with a disability income policy, qualified or non-qualified and more.
A complicated type of insurance:
LTC insurance is a complicated type of insurance and it deserves much of your attention. Because there are so many ways to address this type of insurance--it can lead to doing nothing, just because of the overwhelming choices.
Should I buy this type of insurance or not?
Generally if your total asset level is $250K to $300K or less, you may not be interested in LTC insurance. But that is a wide guideline, it depends on your situation. As your assets grow, it is more likely that you will consider an LTC policy. You will have more to pay by an extended stay in a care facility. The higher your asset level, the easier it is to afford the premiums for a policy.
Are policies different than 10-20 years ago?
Yes, you can now buy a shared policy, you can get policies that provide for adult day care and home care--where 20 yrs ago, these were very hard to find in a long term care policy. These types of policies can be structured in so many ways!
Contact us for a no obligation conversation. We are not high pressure. We are here to serve you.
At CG Financial Consulting we take a look at your investments, insurance and liabilities, and make a comprehensive financial plan to meet your goals and what you want to achieve. There are no yearly fees or percentages that some planners charge. We charge by the hour or by the plan, there is never a conflict of interest.