Santa Barbara, CA (PRWEB) November 04, 2013
Surveys continue to show that many people are unprepared for the cost of a chronic disability due to frailty, illness or an accident. Those caring for parents are concerned about how they will be cared for in the future and what would pay for their care. Many wonder, “Is long-term care insurance a viable option?”
Long-term care insurance has been in the news lately as the cost of a policy today is more expensive than it was just a few years ago. In 2012, insurance companies collectively paid $6.6 billion in claims to policyholders. In order to pay future claims insurance companies are charging higher rates.
Nevertheless long-term care policies still offer tremendous value, especially when compared to the cost of paying for care with income and savings. An extended health care event can play the WILDCARD in a retirement plan. A long-term care policy does not reduce the probability of needing care, but it does ease the financial, physical, and emotional toll that caregiving places on one’s spouse and children.
Here are three strategies to maximize value in a long-term care policy.
1) Options to pay premiums with pre-tax dollars
2) Look for creative ways to customize policy benefits.
3) Lastly, be sure to look at “linked benefit” coverage. Many like these policies because if care is needed, the policy pays benefits to cover those expenses. If care is not needed, the policy will pay a death benefit to a named beneficiary. Policy owners can access the cash in their policy at any time or cancel it for its surrender value. These policies can be funded with a single premium or ongoing annual premiums.
November is long-term care awareness month and a good time to have a conversation about a plan to protect both family and finances; long-term care insurance is a cost effective way to fund this plan. When considering options, it is important to work with an agent who specializes in this coverage and can help maximize value with a policy customized for one’s specific needs and budget.
Brad Tisdale is offering complimentary long-term care policy reviews during the month of November. Please contact Mr. Tisdale at (805) 690-3874 or at btisdale(at)missionwealth(dot)com to discuss what you can do to help provide a safe and secure future for your family.