Long-term care (LTC) is assistance with activities like bathing, dressing or eating for a period greater than 90 days.
- LTC can range from care at home to skilled care in a nursing home or memory facility.
- LTC is not covered by traditional health insurance, HMO plans, Medicare or Medicare supplement policies.
- Some health plans may cover nursing home or home care but only on a short-term or limited basis.
What is LTC Insurance?
- LTC insurance is designed to help you conserve assets and live with dignity and independence when physically or mentally impaired.
How Does LTCi Work?
LTCi benefits trigger:
- When you need help with at least 2 of 6 Activities of Daily Living (ADLs): bathing, dressing, toileting, transferring (to and from bed), continence, eating.
- When you need help because of cognitive impairment: Alzheimer’s, dementia, depression, memory, reasoning, orientation, behavior.
- When care is expected to extend beyond 90 days.
We’re finding some people prefer some of the advantages of going the “hybrid” route for their long-term care coverage. I work with highly experienced professionals who understand the “Hybrid” market inside and out.
Our hybrid clients typically:
- Want a guarantee there will be NO rate increases to their premium, ever.
- Are very comfortable financially and are tempted to even just self-insure the risk, but realize having insurance in place may be prudent.
- Are people who have $100-150K in an easy-access fund like money market, CD, etc. – as “rainy day” money.
- Like to know they are going to use this insurance. With Hybrid, there’s a death benefit (life insurance) or the option to use the death benefit for long-term care costs instead. Hybrids work very similarly to “stand-alone” LTC products at claim time.
- May have income tax sensitivity. Benefits are income tax free.
- May have more serious health issues preventing the stand-alone companies from issuing them a policy. (We can often find a hybrid company may accept some health histories that are not acceptable by stand-alone companies.)
Other advantages of some Hybrid LTC products:
- One of our carriers still offers UNLIMITED lifetime coverage for LTC
- Though monies are re-allocated, it remains YOUR money under your control. So the money will be used either for long-term care costs, or for a death benefit (life insurance) or you can pull out your money later.