Many people think that long-term care planning is a decision about whether to purchase long-term care insurance or not. However, long-term care planning is much more. It is a discussion about how you will fund this expense, where you will receive long-term care and who will provide the care.
While long-term care insurance is one way to fund long-term care expenses, it is not the only option. Policies can be unavailable to those who are not healthy enough to purchase them and many object to the “use-it-or-lose-it” nature of long-term care insurance. Long-term care expenses can also be financed through a newly developed “hybrid” combining both long-term care insurance and annuities.
In some cases, these types of products will double or triple the annuity payment when long-term care is needed. Additionally, these products can be purchased with a single lump sum payment which might be preferable to long-term care insurance which generally requires lifetime payment of premiums and the possibility that premiums may increase.
Hybrid Annuity Benefits:
- No out of pocket premiums
- Tax-free benefits for long-term care needed
- 1035 exchanges options to use the current cash value of similar products you may already have in place.
- As your annuity grows, your long-term care benefits also grow
- Leverage, some annuities have a multiplier that will increase benefits for long-term care, up to 3 times the payout
- If the long-term care benefit is not needed, benefits are available for other purposes
Each person’s situation is different and you need to see if any of these solutions fit your situation. Be sure to talk to a Long-Term Care insurance expert to discuss all of your options.
Call GoldenCare at 1-800-842-7799 or Contact Us.