Long Term Care Insurance Options | Spencer Insurance Agency, Inc

Long Term Care Insurance Options

1.    Stand Alone Long Term Care Policy

  • Advantages
    • You can purchase inflation protection so benefits increase with inflation
    • Some policies do not have a deductible (elimination period) for Home Care
    • Premiums are waived while you are on claim
  • Disadvantages:
    • Your cost can increase as premiums are not guaranteed. However, premium increases need to be approved by the state insurance commissioner and new rates are based on your age at issue.
    • You may die before using your benefits. However, we buy auto and homeowners insurance policies and hope we never use them!
    • No Death Benefit

 

2.    Life Insurance with Extended Care or Long Term Care Rider

  • Advantages:
    • Long term care benefits are paid by accelerating the death benefit of your life insurance policy.  Most hybrid life policies offer you 2 to 4% of your life insurance benefit monthly toward your Long Term Care costs
    • Premium is guaranteed
    • You or your beneficiary will receive your life insurance benefits. You receive the benefits if you need Long Term Care.  If you die before needing Long Term Care benefits then your beneficiary receives your death benefit tax free
  • Disadvantages:
    • No inflation protection available.  You would need to increase death benefit of policy
    • Premiums continue when you have a claim for Long Term Care benefits.  You can arrange to pay your life insurance for a limited number of years.  The shorter the period the higher your premium.
    • May affect public assistance (Medicaid)

3.    Annuity with Long Term Care Rider

  • Advantages:
    • Use the assets in the annuity toward your Long Term Care benefit
    • No Premium increases
    • If you never use Long Term Care benefits then your beneficiary receives the death benefit of your annuity tax free when you die
  • Disadvantages:
    • No inflation protection
    • May affect public assistance (Medicaid)

 Call us today at 215-885-2200 to review your Long Term Care Options!

Close

Check out how you can win an iPad mini.

Open