Long Term Care Insurance
Protect and celebrate the golden years.
Long Term Care (LTC) Overview
Have you pondered the prospect of thriving well into your 80s, 90s, and beyond? Is living life on your own terms important to you? Numerous questions arise when contemplating your later years. Long-term care encompasses a range of services crafted to address an individual’s health or personal care requirements when they are no longer able to carry out daily activities independently. Nevertheless, establishing a plan is an important initial move. It’s important to understand your LTC options. As a part of the planning process, we can review any existing LTC protection you may have and assist in evaluating your LTC options.
What is Long Term Care (LTC)?
Who Might Need Long Term Care (LTC)?
Paying for Long Term Care (LTC)
Long Term Care & Chronic Illness
What is Long Term Care (LTC) Insurance?
There may come a point in life when taking care of oneself becomes particularly challenging, especially in the later years. Long-term care (LTC) insurance is specifically designed to address your changing health and personal care needs. This coverage goes beyond medical treatments, encompassing non-skilled personal care assistance. Such assistance may involve aiding with essential Activities of Daily Living (ADLs) like bathing, dressing, using the toilet, transferring to or from bed or chair, managing incontinence, and help with eating.
It’s crucial to note that Medicare does not cover ADLs. LTC insurance provides a comprehensive safety net, ensuring you receive the necessary support and assistance to maintain a good quality of life, especially during periods of extended care needs. Understanding and securing LTC insurance represents a proactive step in planning for potential challenges that may arise in the later stages of life.
Who Might Need Long Term Care (LTC)?
The necessity for LTC is a reality that can touch anyone, irrespective of age or background, and may arise from various circumstances. This need may stem from chronic illnesses, severe cognitive impairments, or unforeseen events such as accidents or injuries. As life expectancy increases, a significant trend in our society, individuals are granted the potential to enjoy longer retirement periods. However, this extended lifespan also raises the likelihood of encountering health conditions commonly associated with the aging process.
In the contemporary context, Americans are living longer than ever, presenting both the opportunity for an extended and fulfilling retirement and the challenge of managing health-related concerns that often accompany aging. As we embrace the prospect of longer lives, it becomes imperative to consider and plan for the potential need for LTC, recognizing that unforeseen health events can occur, and having a robust plan in place can contribute to a more secure and comfortable future.
Paying for Long Term Care (LTC)
Many caregivers and older adults worry about the costs of LTC. These expenses can use up a significant part of monthly income, even for people who thought they had saved enough. How people pay for LTC depends on their financial situation and the kinds of services they use.
Some people believe that their current health or disability insurance will pay for their LTC needs, but most of these insurance policies include limited, if any, LTC benefits. In most cases, people must find other means of paying for LTC. They may rely on a variety of payment sources, including personal funds, federal and state government programs, and private financing options.
It’s important to understand that managing the intricacies of financing LTC poses many challenges including potential implications for an individual’s tax situation and the inheritance they intend to pass on to their heirs. The landscape of LTC planning is multifaceted, encompassing diverse financial considerations that can significantly impact an individual’s overall financial picture.
We can assist you in navigating this complexity, answer your questions, and provide comprehensive LTC planning and guidance. Our goal is to empower you to make informed decisions that align with your goals, while considering any possible tax implications and the legacy you may wish to leave for your loved ones.
LTC and Chronic Illness Solutions
There are many ways to help cover the cost of care, such as relying on family and friends, personal savings, home equity loans, and state Medicaid programs.¹ Below are insurance options to consider when planning for LTC:
1. LTC Insurance
Insurance policies that are specifically designed to help pay for the costs associated with long term care
2. Hybrid LTC + Life Insurance
3. Life Insurance with Acceleration Benefits
Comparing Benefit Types
Traditional LTC
Hybrid LTC + Life Insurance
Life with Acceleration
Primary Benefit
LTC Benefit
LTC Benefit
Death Benefit
Secondary Benefit
×
Death Benefit
LTC/Chronic Illness Benefit
Hybrid Long Term Care & Life Insurance (LTC-Life Combination)
In addition to traditional LTC, hybrid LTC solutions are available, which are whole life insurance policies with LTC riders attached to them. Depending on the specific LTC insurer and product, hybrid LTC policies typically provide three important guaranteed benefits:
- LTC Benefit Pool (portion of policy death benefit earmarked for LTC) ²
- Death benefit
- Policy Surrender Value (surrender value) that increases over time
Hybrid LTC Features & Benefits
Flexible Benefits
Certain insurers offer policies that provide a benefit whether you need long term care, never need care, or if you decide to cancel the coverage and receive the surrender value.
Protect Your Retirement
A policy may help you protect your retirement assets from being depleted by LTC expenses.
Valuable Dividends
Through a variety of insurers, policyowners are also eligible to receive dividends. While not guaranteed, many insurers have been paying policy dividends to eligible participating policyowners for over a century.
IMPORTANT DISCLOSURES
- To qualify, income and assets must meet state requirements.
- Receiving LTC benefits reduces the death benefit and Policy Surrender Value.
Product availability varies by carrier, state, and individual eligibility. Not all products listed are available in all states or to all applicants. Product descriptions on this page are for general informational purposes only and do not constitute a solicitation or offer to sell any specific insurance or annuity product. All products are subject to underwriting approval and applicable state insurance regulations. Riders and benefits are subject to additional charges, terms, conditions, and limitations. Variable products involve investment risk, including possible loss of principal, and are sold by prospectus. FundaDream Insurance Solutions, Inc. is a licensed California insurance corporation. Consult the applicable carrier contract for full terms, conditions, and limitations. FundaDream’s charitable giving is made from general corporate revenues at the sole discretion of FundaDream leadership and does not constitute compensation to any licensed insurance professional.
The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value for loans in the policy’s early years.
The information provided is not written or intended as specific tax or legal advice. FundaDream, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Insurance products and services are offered through FundaDream Insurance Solutions, Inc., California License No. 0M95835