There are two things that most people can agree on when it comes to Long Term Care services. The first is that people are living longer, and with that come more demand for these services. And the second thing is that people are geographically more spread out from their families, which means family can are less able to be "informal caregivers". In other words, as we age, we need to prepare for paying for long term care services.
However, there is a major obstacle - cost. Paying for long term care services can be expensive and there doesn't seem to be any relief in sight. For those who don't own many assets, Medicaid may be the answer. However, the best option for those who want to preserve their savings is to purchase Long Term Care insurance (LTCI).
LTCI comes in many forms and prices can vary. There are traditional LTCI policies which reimburse the insured for the cost of care, up to a monthly or aggregate limit. Also, at the time of the application, the client can choose how much and how long they want coverage for. For example, a policy may pay a maximum of $4000 each month for 3 years.
Another option is life insurance with "living benefits" that can cover chronic illnesses. These usually just pay a set amount each month as a percentage of the face amount of the life insurance. Keep in mind that when using these policies, the face amount decreases. On the other hand, if the client dies without using the LTCI portion, the policy still pays the face amount.
If you have questions about LTCI drop us a note or visit our site and reach out to us.
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!
