Long-Term-Care Insurance Isn’t Dead. It’s now an Estate-Planning Tool

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If only it were possible for us to live till the end of our days with the same strength and energy we started with. But this can never be the case because; advancement in age has a great effect on our body system.

At this peak stage of your life you are not able to look after yourself properly, you can’t probably be doing the daily basic and necessary things. This is a very crucial time as you will need nurturing again just like the days when you walked on all four limbs.

Your children are probably all grown up and have their own families now. They are pre-occupied with raising their own kids. So the idea of them giving you an all-round care might not be just feasible. This leaves you open to other options.

Long–Term–Care Insurance

Long Term Care Insurance is one of such options. Many people do have plans for this time of their lives. It could be retirement plans. There are other persons who do not plan for this time. Either way, a long term care insurance policy serves as coverage for this.

Services of a long term care insurance

Their services spans through and covers a whole lot of day to day basic caring needs. Long-term care insurance covers:

  • In-home care
  • Adult or elder daycare
  • It offers protection for people who are either injured or ill, these people might need assistance with daily basic needs which include;
  • toileting
  • dressing
  • transferring
  • eating
  • Bathing, etc.

 Cost of a long term care insurance

The cost of getting a long term care insurance is way above ground level, it is pretty high. Looking at the bright side of things, financial advisors now perceive the products of hybrid long term care insurance as potentially powerful estate planning tools.

Shortcomings of Traditional Long Term Care Policies

Unsurprisingly like every other thing, this long term care polices also have their downsides

No usage of premium: There is every possibility that someone might end up not using or needing the services of these long term care insurances. This might be a huge loss for the person. This is why some companies now offer “return of premium”. They return your premium if you end up not using their service.

Policy cost: This is another downside of long term care insurance policies. They are very expensive to afford not to even consider the fact that you might end up not using them.

Solutions to the Shortcomings of Traditional Long Term Care Policies

Because of the short falls like high cost which are associated with traditional long term insurance policies, they soon ran out of business. But on the bright side, new hybrid products addresses some of this short falls and also provide estate planning options. It is worthy to note that these new hybrid products are not in any way cheaper. But at least they have rekindled the interest of consumers in long term care insurance for the purpose of estate planning.

Fixed premium: Unlike what is being experienced in traditional long term care, hybrid long term care do assure their consumers that premium will not increase but will always remain the same.

Death benefit: This is a feature which the hybrid long term care insurance included in their system. It enables them to pay you a death benefit if you never need their services.

Return of premium: As noted earlier, one of the ways in which hybrid long term care reduces the risks of a traditional long term care is by offering the option to return unused premium.

Your Estate and Long Term Care

With traditional long term care polices, one is at risk of either not enjoying the insurance benefit or an increase in premiums. But with hybrid long term care insurance policies you have the liberty to budget a set amount for long term care needs. You won’t have to be scared of an increase in premium. The beauty of it is the death benefit. This can work in unison with other insurance policies.

To plan a long term care insurance policy you will need to consult an expert. For help, guidance and hire, our office is always open. Put a call through today.

DISCLAIMER: The information provided in this blog is for informational purposes only and should not be considered legal advice. The content of this blog may not reflect the most current legal developments. No attorney-client relationship is formed by reading this blog or contacting Morgan Legal Group.

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