Long Term Care Insurance
Overview & Policy Types
Long-Term Care (elder or dependent care) can be a wrenching life event both financially and emotionally which affects an entire family, no matter what age. As the elder population increases more of your clients will be looking into LTC and the options available to them for coverage.
Long Term Care Insurance helps pay for both medical and non-medical expenses when the insured begins to receive their LTC benefits.
We can all agree that Medicare is a start but it is far from being complete coverage. Did you know that costs associated with care received in an assisted living facility, a nursing home, or in-home care, are generally not covered by Medicare! Long-Term Care coverage can help these costs from depleting your client’s or their family's hard earned savings.
Additionally, Long Term Care Insurance allows for in-home care which is always preferable over a Nursing Home.
New Alternatives to LTCI
There is a new revolution in Life Insurance greatly affecting Long Term Care; THE HYBRID POLICY or otherwise known as LINKED BENEFITS.
These are Life Insurance Policies that provide provisions for Long-Term Care making the death benefit accessible to the insured while they are still alive. Unlike nominal Long-Term Care, these are not "use it or lose it products". Any remainder of Death Benefit not used goes to the insureds beneficiaries.
Some Carriers even offer these policies with riders for Retirement Income, Return of Premium, and other benefits. This combination of Long-Term Care funding with Life Insurance has opened a new door in an Industry fraught with increasing premiums and diminishing benefits! Long Term Care has been through some rough times as of late.
Although still a viable product it needs to looked at closely when sold. Hybrids offer a gateway to an entirely new clientele!