A “Win-Win” Option for Long Term Care Insurance


Most of us are unprepared to meet the challenges that accompany an extended hospital stay. It can be devastating if this occurs to an elderly family member. Nearly 70% of those beyond age 65 will need long term care at some time. Once you have witnessed the mental, emotional and financial strain that a loved one experiences when they require long term care, you realize the gravity of the situation. It can become an exhausting strain on the whole family and a life-changing event for the senior citizen.

Medicare will only cover up to 100 days of nursing home care after a hospital confinement. Unless a person has Long Term Care (LTC) insurance, they will be required to self-pay for any additional days in a nursing home. The national average for private nursing home care is around $75,000 annually. Unfortunately, many uninformed Americans assume that government assistance will pay for their nursing home costs, should that need arise.

However, Medicaid will not help with those expenses until the patient has spent-down nearly all of their savings and other assets, reducing their finances to the poverty level. This would also severely diminish inheritance funds for their heirs, as well! Who wants to endure having all of their retirement savings drained, in order to qualify for assistance from Medicaid?

Some people argue that the expense of LTC insurance would be a totally wasted investment if they never need home health aides, assisted living, or nursing home care. However, without the protection offered through LTC insurance, one’s hard-earned assets are at risk if they should be required to self-pay for extended care! Until recently, this was the dilemma that some folks faced when considering the option of applying for LTC coverage.

Fortunately, there is an LTC “hybrid” (or combo) option that utilizes either a life insurance policy or a deferred annuity with a Long Term Care rider. It provides funds for long term care expenses if the policy owner should require home health aide attention, assisted living, or nursing home care. If the insured should not require any long term care assistance throughout their lifetime, their beneficiaries/heirs would receive a cash benefit upon their death.

That means a tangible benefit is paid, even if the insured never needed the available LTC coverage. This preserves assets from the threat of the Medicaid spend-down requirement, and eliminates the concern over potential waste of premiums for unused long term care benefits. It also rewards you and any family members with peace of mind and assurance that you have prepared for the future. It certainly is a win-win option for either you or your heirs!

Contact an independent licensed insurance agent at AustinHealthPlans.com, to see which plans will suit your situation. There are many “A” rated insurance companies from which to choose. The younger you are when you apply, the lower your cost will be. Your current good health will also be an advantage, as applicants will be required to answer health questions for underwriting evaluation. Do not procrastinate and assume that you will be able to qualify later in life. Call us now at: (512) 535-3556 for a free quote. Remember, peace of mind is priceless!

About tcdiehl

I have been an independent insurance agent licensed in Texas since 2003. My focus is providing affordable insurance coverage through multiple reputable insurance providers for individuals, families, and small groups. I can also help with Medicare insurance needs. Allow me to connect you with the appropriate health, life, disability, long term care, and/or dental plan(s) based on your health, personal, and financial needs. Call me at (512) 535-3556, E-mail: tom@austinhealthplans.com.
This entry was posted in Annuities, Investments, life insurance, Retirement Planning, Uncategorized and tagged , , , , , , , , , , , , . Bookmark the permalink.