It’s Long-Term Care (LTC) Awareness Month, and whether you’re in the market now or just curious about insurance coverage choices for the future, it’s important to know where, why, and how to get answers.

 

There are three main options when it comes to LTC coverage.

• Traditional long-term care insurance:Also known as standalone long-term care insurance (LTCi), traditional policies exclusively cover long-term care expenses in your home or a facility.
• Hybrid long-term care insurance:Also known as linked benefits or asset based LTC policies, they pair long-term care with life insurance or an annuity. A hybrid policy provides coverage for both extended care in your home or a facility along with a death benefit. If you never need long-term care, your loved ones benefit from a life insurance payout after you die.
• Life insurance with a long-term care rider:Some life insurance policies let you add additional coverage for long-term care via a rider. A rider lets you use some of the life insurance policy’s death benefit to pay for long-term care needs while you’re still alive. Note that this option could impact the death benefit amount.

 

The right policy for you depends on your goals and circumstances, but how do you decide? Below are some questions to ask yourself before asking your financial professional for more in-depth information.

 

• Which type of coverage is most important to you?Think about how much life insurance, long-term care insurance, or both matter to you.
• How do you want to pay your premiums?Some policies let you pay every year for a set amount of time, while others allow you to pay a lump sum.
• Do you want the option of locking in your premium? Many linked benefits long-term care insurance policies offer guaranteed premiums. This means you never need to worry about premium increases while you own the policy.
• How is your health?If your health isn’t great, you may want to consider policies with more relaxed underwriting guidelines.
• What are the tax advantages? Life insurance benefits are almost always paid out tax-free, while premiums paid for long-term care insurance can sometimes be deducted from your state and federal taxes. Different policies let you reap different tax savings.

 

Still have questions surrounding long-term care options? As your dedicated team, we can help you find the right choice for your situation.

Adapted from LifeHappens1

Securities offered through SCF Securities, Inc Member FINRA/SIPC 155 E Shaw Ave. Suite 102, Fresno, CA 93710: (800)955-2517. SCF Securities, Inc and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com. Note: Securities offered through SVF Securities Inc, Investment Advisory Services offered through SCF Investment Advisors, Inc. This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

1 https://lifehappens.org/long-term-care-insurance-101/what-are-my-options-for-long-term-care-insurance/

IMAGE – Aginginplace.org