Long Term Care Insurance Case Study

A 60 something woman wants to cover the cost of her future health care needs. Her mother has been suffering dementia for five years and she knows the cost firsthand. She’s married with two children. The couple anticipates moving to Europe at some point in their future.

Here is the problem. Long term care insurance companies cover services in the US only. Most carriers allow services in other countries for one year only. Then the women’s care will only be covered if she returns to the US.

The reason is the social services and medical systems are different and the cost of care in other countries is unpredictable.

The domestic insurance companies don’t have a plan to cover this kind of event.
The woman could purchase a hybrid long term care policy. She has means so the options to reposition $100,000 into a policy is available. The policy would provide about $5,000 a month in long-term care but only in the USA. If she moves to Europe, the LTC benefit is limited but the $250,000 life insurance is still good. And the policy comes with a 100% return of premium so she could get all her money back at any time.

While there is still some value in the hybrid policy, it doesn’t do what she wants. There is still the option to buy the policy, but I have a hard time recommending it.

Rather, she ought to check out what the citizenship and residence options will be in the country where she expects to move. Most European countries have plans for long term care services like Medicaid in this country.

When you are ready to talk to an expert about your Long Term Care Insurance case study, schedule a call: www.calendly.com/jimbetter. Find more resources in our blog.

Pin It on Pinterest