Long-term care is the least discussed topic in retirement planning that can lead families to make unnecessary mistakes. More times than less, it is researched when options are often nonexistent or assets almost depleted completely.
Types of Long-Term Care Policies
There are several long-term care policies to choose from including:
- Long-term care insurance;
- Life insurance policies with long-term care riders;
- Annuities with long-term care riders; and
- Life settlements.
Long-Term Care Funding Options
Life insurance and annuities with long-term care riders (or “hybrid policies”) have progressed in the last decade and will keep doing so moving forward. With long-term care insurance policies as the original solution, insurance companies raising premium rates and going out of business have forced many to change their view of the industry.
There are several misconceptions about long-term care, including government benefits such as Medicaid and veterans benefits, specifically Veterans Aid and Attendance. Since Medicare not paying beyond 100 days, those needing to find care need to know what’s available. Life settlements have also emerged as an alternate option to funding care either at home, in an assisted living facility, or nursing home.
With so many long-term care options to choose from, it’s important to know which one makes sense when deciding.
