I don’t like making ongoing financial commitments. Is there a “one and done” way to get this insurance? Several insurance companies offer plans that allow you to “single pay” or “prepay” the premium. For example; a healthy 50-year-old male could use a $100,000 single payment to secure a $500,000 LTC benefit. His plan is paid-up and will remain in force for the rest of his life. At death, his plan with pay a $170,000 Death Benefit less any LTC benefits paid out. There are many variations available on this basic concept. The best thing to do is discuss your plan desires and concerns with an LTC professional and consider with options work best for you.
I can afford to self-insure for a year or two but how can I protect my assets if I’m faced with a long term catastrophic illness? There are plans available that allow you to secure an unlimited LTC benefit (you can never use up your benefits no matter how long you need help). These plans can help you create a “stop-loss”, allowing you to self-fund your first 12 to 36 months of care and let the insurance company pay for any care that lasts longer than that.
Have I waited too long to qualify for protection? The Insurance industry has developed special plans that can help provide protection to those of us that are a little older, have a more colorful medical history, or both. These plans can help people leverage their ability to self-fund their Long Term Care by providing additional funds in concert with their own funds. For example, a 75-year-old male could leverage $100,000 into a $250,000 LTC fund. This is done through a Pension Protection Act Qualified Long Term Care Annuity (PPAQLTCA). The payment of the LTC benefits from the PPAQLTCA can be tax-free and the unused funds from the original $100,000 are refundable at surrender or death. Although there are some medical qualification requirements to secure this type of plan, they accept a broad range of medical histories. This is just one example, there are many possible options to consider.
Have a question? Please feel free to contact me.
Michael Teller, CLTC, CSA
“Certified in Long Term Care” “Certified Senior Advisor”
Specializing in Long Term Care Planning for more than 30 years
Center for Long Term Care Planning
1825 NW Corporate Blvd., Suite 110
Boca Raton, FL 33431