Long Term Care Insurance; Are there Other Options?
January 25, 2013 
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When we speak to consumers, they tell us they want long-term care insurance but hate paying for something that they may never use. Several of them have likened it to going to the dentist; something that is often necessary, but just as often avoided at all costs.
Because of the true cost of long-term care to someone that needs it; insurers have increased LTC polices substantially over the last few years. Several companies have pulled back and just as many have left the market completely.
Even though fewer companies are selling LTC insurance, the need for long-term-care planning remains greater than ever. Today, there is a great deal of attention that is being focused on the aging of the population. As the Baby Boomer generation begins to reach retirement age, people are starting to realize that there may come a time when they could need assistance due to declining health or ability.
Because of increased life expectancy, many people will live 20-30 or more years beyond their normal retirement age. Yet, while they may be living longer, this does not necessarily mean that they will be living healthier. Therefore, from a financial standpoint, it is imperative that people plan ahead not only for basic living expenses in retirement, but also for the high cost of long-term care. From a retirement standpoint, a long-term care event is one of the few things that can really put a dent in someone’s retirement plan.
For those people who are looking to buy some sort of long-term care coverage, there is now more choices available then traditional long term-care insurance. There are hybrid products that combine life insurance and long-term care coverage. Several of these hybrid policies have a complete Return of Premium to the owner should they decide to cancel the policy before they use the long-term care benefit or have died. There are single premium life insurance products that allow the owner to tap the death benefit while alive, as a living benefit, to pay for long-term care. With both of these policies, if the LTC benefit is not used, the death benefit is paid to the beneficiary.
Finally, with the cost of long-term care increasing it may not be affordable to buy a policy that covers 100% of the expected daily expense. That is the beauty of a long-term care insurance policy; it can be created for just about any amount of daily benefit that is affordable. This allows the owner to share in the cost of future long-term care events if they occur and at the same time pay a lower premium for the reduced benefit. Remember, having some long-term care insurance is always better than having none.
Speak with a Retirement Solutions Specialist to learn more about what are the best options for you.
