Are You Guilty of Kicking the LTC Can Down the Road?
Aug 15, 2019
Email US
Click to Email Us
Historically, shifting the Long-Term Care risk has been accomplished with Traditional Long-Term Care policies. These are pure risk policies, paid annually for life or till claim. Cost for these types of policies has risen over the years due to declining interest rates.
Many people have shied away from these types of policies because of rate increase histories and because if they never go on claim, they feel they are losing the money spent over the years on premiums. This trend has resulted in the creation of a wealth transfer product called Asset Based Long- Term Care. The uniqueness of this product helps eliminates the fear of if I dont use it, I lose it. This product is ideal for individuals who understand the need for Long-Term Care planning and are considering self-funding their potential care needs.
The design of these products allows for three main benefits. First, many polices guarantee a refund of the single premium paid in at any time. Second, if you die without needing
care, a step up of the initial premium is paid out as a tax-free death benefit. Third, if you need care, these policies pay out a multiple of the premium as a tax-free benefit to pay for care. The care is provided by a Monthly acceleration of the Death Benefit and some plans pay a multiple of the Death Benefit for needed care. This product may be appropriate for people who are over 60 and are thinking of self-insuring. They can self-insure with leverage of 4, 5, or 6 to one.
If you have been guilty of kicking that Long- Term Care Can down the road, now is a great time to look at your options with an Asset Based Long Term Care policy. Growing older is mandatory but doing it well is optional. Having a plan for Long-Term Care is part of doing it well. What is your plan?
Editors Note: This article was written by Tim Ripp, EVP, and Associates of Clifton Park and provided by Bridget M. Sullivan, a Financial Advisor offering Securities and investment products and services offered through Waddell & Reed, Inc. (WRI), member FINRA/SIPC. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. The article is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions. Waddell & Reed is not affiliated with Timothy Ripp or Associates of Clifton Park.
Other Articles You May Like
A Complete Guide to Long Term Care Insurance in Sarasota, Manatee, and Charlotte County, Florida
Securing Your Future with the Right Long-Term Care CoverageWhen it comes to planning for the future, one of the most important considerations for seniors in Sarasota, Manatee, and Charlotte County, Florida, is ensuring that they have access to the care they need as they age. Long term care insurance is a vital tool that can help protect your finances and provide peace of mind for you and your loved ones in the event that long-term care becomes necessary.In this guide, we will explain what long-term care insurance is, why its important, and how you can find the best policies available in Sarasota, Manatee, and Charlotte County. What is Long Term Care Insurance?Long term care insurance is a type of insurance designed to cover the costs associated with long-term care services, which are not typically covered by regular health insurance or Medicare. These services can include assistance with daily activities such as bathing, dressing, eating, and other tasks that may become challenging due to aging, illness, or disability.There are two main types of long-term care insurance policies:Traditional long-term care insurance: This type of policy offers a set benefit amount that can be used for a variety of long-term care services, such as nursing homes, home care, and assisted living facilities.Hybrid policies: These policies combine long-term care coverage with other types of insurance, such as life insurance or annuities. The advantage of hybrid policies is that they can provide a death benefit if long-term care services are never needed.For seniors in Sarasota, Manatee, and Charlotte County, having long-term care insurance can help ease the financial burden associated with paying for care as you age. Why is Long Term Care Insurance Important?As seniors approach their later years, the likelihood of needing some form of long-term care increases. Whether it's in-home care, assisted living, or nursing home care, these services can be costly. In Florida, the costs of long-term care services can vary depending on the type of care and the location.Here are some key reasons why long-term care insurance is crucial:Protection against high costs: The cost of long-term care in Florida can add up quickly, and Medicare doesnt cover most of these services. Long-term care insurance helps protect your savings and assets from being drained by the high cost of care.Peace of mind: With long-term care insurance, you dont have to rely solely on family members to provide care or to make difficult financial decisions in times of need.Flexibility: Long-term care insurance allows you to choose where you receive care, whether at home, in an assisted living facility, or in a nursing home.Preserves your independence: By covering the costs of in-home care, long-term care insurance allows you to stay at home longer, maintaining your independence and avoiding a move to a nursing home or assisted living facility. What Does Long Term Care Insurance Cover?Long-term care insurance can cover a wide range of services that help seniors with activities of daily living. Some of the services covered by long-term care insurance policies include:Home health care: Assistance with tasks like bathing, dressing, and meal preparation in your own home.Nursing home care: Skilled nursing services provided in a nursing home.Assisted living: Care provided in an assisted living facility that offers support with daily living activities.Adult day care: Programs that provide supervision and care during the day for seniors who live at home.Respite care: Temporary relief for family caregivers, allowing them to take a break from caregiving responsibilities.Before purchasing a long-term care insurance policy, it's important to understand the specific benefits it provides and whether they meet your needs. How to Choose the Right Long Term Care Insurance for YouChoosing the right long-term care insurance policy can be a daunting task, but its an essential step in protecting your future. Here are some tips to help you make an informed decision: Assess your needs: Consider how much care you may need in the future and whether the policy offers coverage for the types of care you anticipate needing. Compare policies: Look at multiple providers and compare the premiums, coverage, and benefits offered. Understand the costs: Evaluate the costs of premiums and whether the benefits of the policy outweigh the costs. Check for inflation protection: Ensure that the policy includes inflation protection, so your coverage keeps up with rising costs of care. Consult a professional: Work with an insurance agent or financial planner who can help you navigate the options and find the best policy for your needs. Finding Long Term Care Insurance Providers in Sarasota, Manatee, and Charlotte CountyIf you are considering long-term care insurance, its essential to find a reputable provider in Sarasota, Manatee, and Charlotte County, Florida. The Seniors Blue Book offers a comprehensive directory of local resources to help you explore different options and find trusted providers.You can start your search for long-term care insurance providers and other senior resources here: Explore Senior Resources in Sarasota, Manatee, and CharlotteCountyAdditionally, you can explore specific categories related to long-term care insurance, including health, housing, and home health options: Browse Home Health Providers and Senior Resources ConclusionLong-term care insurance is an essential part of financial planning for seniors in Sarasota, Manatee, and Charlotte County. It offers protection against the high costs of care and provides the peace of mind that comes with knowing your needs will be met in the future. Whether you're considering in-home care or assisted living, long-term care insurance ensures that you can age with dignity and independence. For more information on long-term care options in your area, visit the Seniors Blue Book directory and start exploring the many resources available to help you plan for your future care needs.
Understanding Long Term Care Insurance in Dallas, Texas: A Guide for Seniors and Families
Long term care insurance is an important consideration for individuals planning for the future. As we age, the need for extended care, whether due to illness, injury, or simply the effects of aging, can become a reality. In Dallas, Texas, long term care insurance is an essential tool for ensuring that individuals and families are financially prepared for these future needs.This blog will explore the importance of long term care insurance, its benefits, and how it can help Dallas residents plan for the future. We will also highlight how to access resources related to long term care insurance in Dallas, Texas, to ensure that families are well-informed and supported.What is Long Term Care Insurance?Long term care insurance (LTCI) is a type of insurance designed to cover the costs of long-term care services. These services are typically needed when an individual can no longer perform basic daily activities, such as bathing, dressing, or eating, due to chronic illness, disability, or aging. LTCI can help cover the expenses of various types of care, including:In-home care: Assistance provided in your own home, including help with daily living activities and skilled nursing services.Assisted living: Residential care for individuals who need assistance with activities of daily living but do not require intensive medical care.Nursing home care: Round-the-clock care in a facility for individuals with significant medical or personal care needs.Adult day care: Programs that provide supervision and care for individuals during the day, allowing family caregivers a break.In Dallas, long term care insurance can be a critical component of your financial planning, helping to mitigate the high costs associated with these types of services.Why is Long Term Care Insurance Important?The cost of long term care can be overwhelming. According to recent studies, the average cost of nursing home care in Texas can exceed $80,000 per year, while in-home care services can cost several thousand dollars per month. Without insurance, these costs can quickly deplete savings and put a strain on families.Here are a few reasons why long term care insurance is important for Dallas residents:Protecting savings and assets: Long term care insurance helps protect your assets from being drained by high medical and care expenses.Choosing the care you want: With LTCI, you have more flexibility in choosing where and how you want to receive care, whether its at home, in an assisted living facility, or in a nursing home.Peace of mind: Knowing that you have coverage for potential care needs can provide peace of mind for both you and your family.Relieving the burden on family caregivers: By securing long term care insurance, you can reduce the burden on family members who might otherwise have to provide care or manage complex caregiving responsibilities.What Does Long Term Care Insurance Cover?Long term care insurance typically covers a range of services designed to support individuals who need assistance with everyday activities. These can include:Home health care: This may include nursing services, physical therapy, and help with daily tasks like dressing, bathing, and eating.Assisted living: Coverage for residence in an assisted living facility, where individuals receive help with daily tasks but still have some independence.Nursing home care: If needed, LTCI can cover the cost of care in a skilled nursing facility for those who require constant care.Respite care: Coverage for temporary care services, giving family caregivers a break.Its important to note that policies may vary, so it's essential to review the terms of your insurance plan to understand the exact coverage provided.How to Find Long Term Care Insurance in DallasIf you're considering long term care insurance, it's important to compare different plans and providers to find the best option for your needs. In Dallas, there are many local resources available to help you make an informed decision. Here are some steps to take:Consult with a financial advisor: A financial advisor can help you assess your needs and determine how much coverage you may require.Review multiple insurance providers: Dallas offers a variety of insurance providers, so take time to compare policies, pricing, and coverage.Check for group plans: Some employers and organizations offer long term care insurance as part of employee benefits. Be sure to explore these options if they are available to you.Look for local resources: The Seniors Blue Book provides a comprehensive directory of senior resources in Dallas, including options for long term care, home health care, and other services. Explore the following links for more information:Senior Resources in Dallas, TexasLong Term Care Insurance Resources in DallasConclusion Long term care insurance is an essential tool for individuals in Dallas, Texas, who want to ensure they are financially prepared for future care needs. With rising costs and the increasing demand for care services, securing long term care insurance can protect your assets, give you peace of mind, and provide flexibility in choosing the right care for your needs. By exploring local resources and consulting with professionals, you can make an informed decision that aligns with your long-term care goals.
Long-Term Care Insurance in Colorado Springs: What Seniors and Families Need to Know
As the population ages, more families in Colorado Springs are exploring options to secure their future care needs. One of the most important tools in this planning process is long-term care insurance. With the rising cost of senior services, from assisted living to skilled nursing, having a plan in place is essential for both financial stability and peace of mind.If youre a senior or family caregiver in Colorado Springs looking to understand long-term care insurance, this guide is for you. What Is Long-Term Care Insurance?Long-term care insurance (LTC insurance) is a policy designed to help cover the costs associated with extended care services that arent typically covered by Medicare. These services may include:Assisted livingMemory careIn-home careSkilled nursingAdult day careThese types of care are essential for those who may need help with daily activities such as bathing, dressing, eating, and medication management due to aging, chronic illness, or disability. Why Is Long-Term Care Insurance Important?Colorado Springs is home to a growing senior population, and the cost of long-term care continues to rise across the state. Long-term care insurance helps protect your assets, reduces the burden on family caregivers, and gives you more choices when it comes to care options.Some key benefits include:Coverage flexibility: Policies often include a range of services, from in-home care to residential communities.Financial security: Helps manage out-of-pocket expenses so retirement savings arent quickly depleted.Family support: Reduces stress and financial strain on loved ones who might otherwise provide unpaid care. Colorado Springs: A City with Senior Support in MindKnown for its scenic beauty and active lifestyle, Colorado Springs is also a hub for senior-focused services. From top-rated medical facilities to a variety of aging care resources, the city is well-equipped to support older adults through all stages of aging.Local residents can take advantage of:A growing number of senior resource providersAccess to trusted elder law advisorsEducational seminars and workshops about long-term care planningCommunity support through local nonprofits and government agenciesBrowse a wide range of senior resources in Colorado Springs Learn more about insurance and financial support services When Should You Consider Buying Long-Term Care Insurance?The best time to purchase a long-term care policy is before you need it. Ideally, individuals in their 50s or early 60s begin exploring policy options, as premiums tend to be lower and approval more likely when you're in good health.Keep in mind:Some policies have waiting periods before benefits kick inPremiums can increase over time depending on the insurerNot all providers offer the same featuresreview the fine print carefullyWork with a qualified advisor to compare policies and find the best fit for your anticipated needs. Questions to Ask When Exploring LTC InsuranceIf youre shopping for long-term care insurance in Colorado Springs, ask the following:What services are covered under the policy?Are there daily or lifetime benefit limits?Is the policy tax-qualified in Colorado?How long is the elimination (waiting) period?Does the policy cover Alzheimers or dementia care?Understanding the answers to these questions will help you make a confident and informed choice. Final Thoughts: Planning Today for Peace of Mind Tomorrow Navigating the future of aging isnt always easy, but long-term care insurance can make a world of difference. In a city like Colorado Springs, where seniors have access to excellent care options and resources, having a policy in place allows you to take full advantage of whats availablewithout the financial worry.