How Will You Cover the Cost of LTC?

long_term11“Self-insuring” for long-term care with personal income and assets is often a strategy used; however it puts a very significant portion of your retirement savings at risk.

Family members sometimes assume the burden of care, which over time can have a significant impact on their lifestyle, personal and work commitments, as well as their physical and emotional well-being.

A standalone long-term care insurance policy is designed to cover only the long-term care need, whether the need for care arises or not; meaning yout may pay premiums for a benefit that you may never use. (For those who do not need life insurance, standalone long-term care insurance can be an appropriate solution.)

Medicare only pays for short periods of care; typically only up to 100 days, after discharge from the hospital.

Medicaid generally covers only people with very little income and assets, and usually covers only care received in approved nursing homes. Patients may have very little control over where and how they are cared for.`’

A life insurance policy combined with long-term care insurance coverage is more cost-effective than buying a permanent life insurance policy with similar death benefit and a standalone LTC policy with similar monthly benefit amount. It also allows you the flexibility to use all, some or none of your life insurance benefit to pay long-term care expenses. Any portion not used for care is passed along to your beneficiaries at the time of your death.

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