Long Term Care

Long-term care is an ever-growing market. We live in a country where the life span is increasing. When Social Security was created in 1938, it was put in place for disbursements to start at age 65. The average life span at that time was 63. When Social Security was created, the fact is that it was successful because most people didn’t make it to Social Security age. But today people are living to ages 85 or 95. That amounts to another 35 years of life over previous generations. So long-term- care insurance becomes increasingly more important. Long-term care is a product that insurance companies are wrestling with right now. Some, like Met Life, have gotten out of that business; while other carriers like John Hancock, GenWorth and TransAmerica to name a few have long-term-care products that are traditional in scope and offer you the possibility of good care at affordable rates.

Most long-term-care policies limit the number of years of coverage. It could be as few as one year or as many as five years. Lifetime policies are pretty much a thing of the past. Most policies limit coverage to five years. Three years of coverage is typical today, because statistics show that if you are in a long-term-care facility and you are an older individual, your life expectancy is about three to four years.

Today, long-term-care policies are different from those created 20 years ago. Twenty years ago they were created for the nursing home environment. Today, a long-term-care policy covers four classes of care: home health, independent living, assisted living and nursing home care. Coverage in the amount of $200 a day will apply towards any of these classes of coverage. Traditional plans offer daily or monthly coverage for a specific period of time. You can get discounts if spouses purchase together. Because of its value, long-term-care coverage is increasingly being offered as part of an employer’s group coverage program.

Long-term care covers you in a number of ways including protecting your assets. Another not so obvious but extremely important benefit is the benefit of keeping a family together. Most family members are not healthcare givers. Statistics show the caregiver often passes away before the one who’s under care. It’s stressful on the caregiver, and the family of the caregiver. No matter how much you love someone, it is much more difficult to take care of them when they’re sick. With professionals providing the care, you’re free to enjoy your loved one.

It’s important to note there are alternatives to traditional long-term-care products. New life and annuity products enable you to combine a life insurance policy or an annuity policy with a long-term-care benefit (as a rider) so you can continue to build the asset value and provide long-term-care coverage for up to two people. The asset is always there and can be used in a variety of ways. Whatever portion is not utilized for a long-term-care benefit can then be passed on to the beneficiary.