Three things that most people don’t know about Long-Term Care Insurance (LTCI)

Here are three things that most people don’t know about long-term care insurance (LTCI).

1.   The focus is on home care benefits, not nursing homes. LTCI can cover nursing home and memory care. However, the vast majority of people want to stay at home, and that is where this insurance makes sense. When a primary caregiver needs help, they simply call the insurance carrier, who can help locate qualified local home care services. In most cases, the insurer will pay benefits directly to the home health care agency. If you aren’t happy with that agency, policies let you choose another. It’s not managed care, it’s care that is managed to help a family.

2.   Plans offer benefits that increase automatically to keep up with inflation. Inflation is a real concern, and long-term care insurance plans have a built-in solution. Plans offer inflation riders, which allow the benefit to keep up with the costs of care. Some of these riders increase benefits by 3% compounded annually, others by 5%. So, a $300,000 contract would grow to more than $450,000 in 10 years.

3.   There are flexible options to pay premiums. LTCI has policies for any budget. For example, clients with investable assets can reposition a portion of those assets and purchase a single premium plan. Or someone can purchase a premium that lasts for 10 years or until age 65. Finally, there are ongoing lifetime premium options that can be paid on an affordable monthly basis.

For help building your policy, make an appointment with an expert: Find more long-term care resources in our blog.

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