Why Long-Term Care Insurance?

Most people understand the importance of life insurance for their families. Statistics show that this is not the case with Long-Term Care (LTC) Insurance, which is unfortunate. When a loved one needs long-term care, the effects are devastating emotionally and often financially for their family. There is a 60% chance of needing some form of long-term care in their lives, according the U.S. Health and Human Services Department. That may include a nursing home, assisted living or in-home-care.

At TopLine Life Insurance, we are committed to connecting valued clients with insurance policies that work for them. We proudly offer Long-Term Care Insurance plans for those who want to protect themselves from the costly payments requisite for patients in long-term care situations.

LTC situations include:

• Nursing Homes
• Personal Care
• Adult Day Care
• Respite Care
• Hospice Care

Unaltered long-term care plans are excellent choices for policyholders concerned about affording long-term care as they age. Their concerns are certainly valid as many people become unable to adequately care for themselves as they grow older, and 60% of people at retirement age today will require the services of a nursing home or another form of LTC in the future — many of whom will eventually have trouble affording continuous care.

Traditional Long-Term Care

Traditional LTC insurance require policyholders to pay an annual premium in exchange for benefits. Should they need long-term care later in life due to illness or age, the policy will pay out a daily or monthly benefit to help cover the expenses of long-term care. In order to qualify for benefits the insured must require help with a set number of Activities of Daily Living. There are six basic ADLs: eating, bathing, getting dressed, toileting, transferring and continence. Each insurance company will have a different set of stipulations that will make an insured eligible for benefits. Most companies require help with 2 ADLs, while other companies require help with 3 ADLs. Please be diligent in your research, before choosing a Long-Term Care policy.

The use it or lose it debate attached with a traditional LTC policy is valid. Statistics show that 60% of us will need some type of long-term care, which means that 40% of us will not need long-term care. If you need the coverage, the purchase of an LTC policy was a great idea. If you never need the coverage, you paid a lot of money for peace of mind. If we only had a crystal ball to guide us with this decision.

There is a policy that protects the consumer if they never need long-term care. If the insured needs long-term care and requires help with their ADLs the policy will deliver monthly benefits to help cover those costs. If the insured never needs long-term care the policy has a built in guaranteed death benefit paid to their beneficiaries upon their death. It is referred to as the Hybrid option.

The Hybrid Options

In 2018 85% of all LTC polies purchased were Hybrid policies, due to their flexibility and guaranteed features. Premiums on hybrid policies are locked in for the life of the policy, unlike traditional LTC policies. There is a guaranteed payment to policyholders, either long-term care benefits will be paid if needed, or a death benefit paid to your beneficiaries. In most cases the death benefit will be larger then the sum of the premiums that were paid. The premium can be paid in one lump sum or paid over a series of years. If the lump sum option is chosen the policy will require no future payments. Hybrid policies may be the perfect vehicle to address the “use it or lose it” anxieties associated with long-term care. Please contact TopLine advisors so we may explain the features of this revolutionary product in detail, Watch the following video to learn more about our hybrid options: