Should You Consider a Long-Term Care Rider with Your Life Insurance Policy?
There are a few options when it comes to long-term care insurance for those who are advancing in years and understand the benefits it offers. For those who aren’t quite certain, as people age and live longer, there is an increased likelihood they will need some type of long-term care in the future. Consulting with long-term care insurance companies would help you get a better understanding of the insurance.
You might live into your 70s or 80s, be completely healthy, get a clean bill of health from your doctor, and suffer an emergency unexpectedly, slip and fall, or face other uncertainties. That may land you in the hospital for several days, weeks, or months. After that, you might need ongoing elder care, which is long-term care.
It might be in the form of in-home care, assisted living, or even nursing homes, but no matter what it is, it’s going to cost you. What many people fail to realize is that your primary health insurance isn’t going to cover those expenses. Neither will Medicaid until you have exhausted your personal savings and other assets.
Some of those assets often include your primary residence (if you own a home). In other words, if you need nursing home care for six months, a year, or longer, Medicaid isn’t going to pay those expenses until your personal assets and savings are exhausted first.
Not only that, if you rely on Medicaid or Medicare, in most states your only option for them to cover long-term care expenses is a nursing home. You might prefer assisted living or in-home care, but you will have to pay for that yourself if you so choose.
You can get a standalone long-term care insurance policy or you may be able to obtain a hybrid policy with a life insurance plan. This is considered a long-term care rider with a life insurance policy.
How does this work?
If you choose a hybrid long-term care/life insurance policy, you may be able to maximize your long-term care benefits, but it will likely minimize your life insurance coverage.
On the surface, that may sound like a negative thing, but what happens is in the event you don’t need long-term care in the future, those long-term care policy premiums are guaranteed. There will be guaranteed fixed costs, but if you don’t need long-term care, you will receive the bulk of your premium back through the death benefit component of your life insurance.
That doesn’t mean this is optimal for everyone, because there are provisions you will need to understand before you move forward. This simply might work better for you in your particular situation, but in order to fully understand and appreciate a standalone long-term care insurance policy, a life insurance policy with a long-term care rider, or a hybrid policy, you should speak to an experienced, licensed agent or broker first.
Make an appointment today and learn everything you can about long-term care insurance, whether you choose a standalone policy, a hybrid, or add a long-term care rider to an existing life insurance policy.
Whatever you do, though, understand the cost of long-term care is increasing and that can make it more difficult for you and your spouse or other dependent in the event one or both of you need long-term care in the future.
If you or a loved one are considering Long-Term Care Insurance Companies in Del Mar CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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