Long Term Care Insurance is a major topic among many. It’s a confusing market for sure. The good news for consumers is there is a wide range of options when it comes to long term care coverage. Laid out below is an outline of some of the available solutions–and we’ve included several attachments that we hope will help you when deciding on long term care insurance.
Traditional Long Term Care Insurance
While fewer companies are offering this type of policy it still can be a good solution for older clients or business owners who can not afford a combination life with long term care. Most of our traditional business is going to Mutual of Omaha or Transamerica. For business owners, traditional long term care premiums can be tax deductible and it is also a benefit they can offer to themselves or key employees on a discretionary basis.
Life Insurance with Long Term Care Insurance
Many companies are offering either long term care or chronic illness riders with life insurance. These products have the advantage of guaranteeing the client can use the policy for life, long term care or both. Premiums are also guaranteed. Clients with who have a current policy with cash values can 1035 exchange to a new policy that has the long term care solution. Life Insurance products available with a long term care solution include individual as well as second to die life.
Premiums can be paid on an ongoing basis or short pay including 10 pay, 20 pay, to age 65 or single payments.
Two of the industry leaders in the life with long term care market are John Hancock and Nationwide. John Hancock reimburses long term care on an actual expense basis while Nationwide pays on an indemnity basis. For more information on these two products, see the attached brochures below. In addition, Nationwide has information on how a trust can own the life insurance with long term care for estate planning purposes. This is a great piece to share with an attorney.
Annuity with Long Term Care Insurance
Finally, there are annuity products with long term care that provide a client with a multiple of their deposit for long term care benefit. These are often popular with older clients because these policies are easier to qualify for (often just a cognitive phone call) and the money is still theirs. The most popular products are from Lincoln Life and State Life/One American.
Have questions about long term care? Let’s chat.
