Your question tells me that this has been weighing on your mind. We see a lot of clients just like you that are desiring education on what are their options. I believe there will be a lot of folks who will get educated by your question, and will be in a better position to take that next step with confidence. My answer to your question should educate you in a non-product specific way, help you feel empowered and create a life where you can start experiencing "Financial Comfort" in this decision.
Option 1 Self Funding- This is a strategy that a lot of people use but unfortunately, in my opinion is a plan based on hope. This can work for some funded by a emergency savings account, the real question should be "What if it doesn't? What is you underestimated the cost? or even worse end up needing care for a cognitive disease such as Alzheimers. Then its the family, often times the spouse and kids who pay the price.
Option 2: Traditional Long Term Care; This is a good solution but does not come with any guarantees of no premium hikes, or money back if you never use it. And its very expensive, especially for those who wait until later in life. If they can get it at all.
Option 3 Asset Based Long Term Care Policies- I really like this kind of policy if you have enough assets to qualify. This is a life insurance policy that allows you to tap into the stepped up death benefit for qualified long term care expenses. The coverage is for up to 50 months in a base policy or another 50 or lifetime with separate riders. Hey Anonymous, this is the really good news. We like to call it the Win, Win, WIn Strategy.
Win #1: If you change your mind, you get 100% of your premium back, a guarantee backed by the insurance company
Win # 2: If you need care, again you can access the stepped up death benefit for care until it runs out, up to 50 months, or +50 or Lifetime with rider purchase
Win #3: If you die and you never used it, the stepped up death benefit goes directly to your beneficiary income tax free. Thus the win, win, win.
Option #4, For some of our younger clients that want to incorporate a Retirement Income Tax Free Strategy, we will use an Indexed Universal Life policy with a LTC Rider.
Dear Anonymous, In summary, I can tell you want to get this right. My final wish for you is that you find someone to work with that cares. Cares enough to take the time to educate you, so that you can feel empowered to start living the life where you experience 'Financial Comfort. | 08.31.15 @ 16:36