It’s Long-Term Care (LTC) Awareness Month, and whether you’re in the market now or just curious about insurance coverage choices for the future, it’s important to know where, why, and how to get answers.
There are three main options when it comes to LTC coverage.
- Traditional long-term care insurance: Also known as standalone long-term care insurance (LTCi), traditional policies exclusively cover long-term care expenses in your home or a facility.
- Hybrid long-term care insurance: Also known as linked benefits or asset based LTC policies, they pair long-term care with life insurance or an annuity. A hybrid policy provides coverage for both extended care in your home or a facility along with a death benefit. If you never need long-term care, your loved ones benefit from a life insurance payout after you die.
- Life insurance with a long-term care rider: Some life insurance policies let you add additional coverage for long-term care via a rider. A rider lets you use some of the life insurance policy’s death benefit to pay for long-term care needs while you’re still alive. Note that this option could impact the death benefit amount.
The right policy for you depends on your goals and circumstances, but how do you decide? Below are some questions to ask yourself before asking your financial professional for more in-depth information.
- Which type of coverage is most important to you? Think about how much life insurance, long-term care insurance, or both matter to you.
- How do you want to pay your premiums? Some policies let you pay every year for a set amount of time, while others allow you to pay a lump sum.
- Do you want the option of locking in your premium? Many linked benefits long-term care insurance policies offer guaranteed premiums. This means you never need to worry about premium increases while you own the policy.
- How is your health? If your health isn’t great, you may want to consider policies with more relaxed underwriting guidelines.
- What are the tax advantages? Life insurance benefits are almost always paid out tax-free, while premiums paid for long-term care insurance can sometimes be deducted from your state and federal taxes. Different policies let you reap different tax savings.
Still have questions surrounding long-term care options? As your dedicated team, we can help you find the right choice for your situation. Reach out to us at (603) 261-3736, and we’ll provide you with the information you need to make better-informed decisions.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.