According to the US Administration on Aging, 70% of individuals turning 65 will need long-term care at some point in their lives. With that truth in mind, now is a good time to see if you qualify for a Life and Long-term Care Hybrid Plan.
Here are four reasons you should consider this Hybrid Plan:
1. Your premiums are locked in. While traditional “LTC-only” coverage might initially have lower premiums, they have typically increased by about 35-50% every 5 to 7 years; With a Hybrid Plan, your premiums are set in stone.
2. Any LTC coverage not used remains in a death benefit pool. For example, if you have a $500K death benefit and only use $200K for long-term care, the remaining $300K goes to your beneficiaries as a tax-free death benefit.
3. LTC payments go to the proposed insured—not the caregiver. Many of our carriers offer indemnity rather than reimbursement. This means if a friend or family member is providing care, you can pay them rather than an in home nurse or traditional caregiver.
4. There is inflation protection for what you use no matter what. If an individual uses a permanent product with an LTC or Chronic Illness Rider, we can provide an increasing death benefit option, which provides additional long-term care coverage. If you don’t use it for additional LTC coverage, it may lead to a larger death benefit or cash value in the case you want to surrender the policy.
The first step is to see if you qualify for this type of coverage. Contact us today at 732-508-6044 to get started!
Damian J. Sylvia
Retirement Income Solutions
220 Monmouth Road
Oakhurst, NJ 07755