Long Term Care/Extended Care Planning

Video: Understanding Long-term Care: Common Misconceptions

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Long Term Care Insurance


Planning Now Gives You More Options Later

Long-term care involves a variety of support and services designed to help you live as independently and safely as possible when you can no longer perform everyday activities on your own.

And putting a plan in place now — as you would for any other future financial need — can help you choose the type of care that is familiar and comfortable for you, whatever your needs might be.

Why planning matters

Chances are, you’ll need long-term care (LTC) at some point in your life. Planning now can help you maintain your choices in the future.

Familiar comfort for the future

We all enjoy being in a familiar environment — like our home and the community we live in — with the people we know and love. So, it should come as no surprise that when faced with the prospect of long-term care (LTC), 74% of individuals want to receive care in their homes.

Why you need to have a plan

Costs are expected to more than double in approximately 20 years.

Putting a plan in place now to address these expenses can give you the freedom to select the services and providers you want later on. And, it may even extend the length of time you’re able to remain in your home.

Know your options

There are many misconceptions surrounding how long-term care expenses can be covered. So, the first step in creating a plan is to know what your funding options really are:

Health insurance

DOES NOT cover long-term care expenses


May cover a portion of long-term care costs, but only up to 100 days; requires a three-consecutive-day stay in hospital under treatment, as well as other qualifiers


Covers long-term care expenses for individuals with countable assets of $2,000 or less (varies by state); care may be limited to a nursing home

Adult children

Many may assume their adult children will care for them later in life, but this can present huge financial, physical and emotional challenges for the children

Out of pocket

Using income and savings or selling assets may be an option; however, it may leave a surviving spouse without adequate financial resources, or reduce a legacy planned for heirs

Long-term care coverage

LTC coverage can be a cost-efficient way to help protect yourself and your assets from the potentially devastating4 cost of long-term care


Select the solution that fits your needs

Here are three common types of products to

choose from:



Life policies with a LTC rider

Consider this option if:

• You wish to enhance or protect the legacy to your heirs

• You need insurance for family protection now, but would like a source of funds to help cover potential long-term care expenses later

Standalone policies

Consider this option if:

• You’re not looking for life insurance coverage

• You desire LTC coverage at a lower cost or would like more policy customization

Note: premiums may increase numerous times in the future, and there may be no policy benefits other than LTC coverage.

Linked-benefit policies

Consider this option if:

• You are primarily concerned with LTC coverage

• Have less need for life insurance coverage

• They offer an extension of LTC benefits beyond the life insurance coverage

• Premiums are guaranteed never to increase

• Typically funded with a single premium or premium scheduled of 10 years or less











How benefits are paid

If you decide that long-term care coverage is right for you, there are two common types of benefit plans available to choose from:


• Bills must be submitted every month

• Each month, wait to see what services are covered; insurance company sends a check for only what’s covered

• Services not covered under your policy will need to be paid for out of pocket

Cash Indemnity

• Elect to receive up to 100% of your available monthly cash benefit

• Use your monthly cash benefit without restrictions, no need to submit monthly bills or receipts once your claim is approved

• Unused monthly benefits can be used for other expenses as you see fit, including saving for future expenses

A little familiarity can mean a lot


Planning for potential long-term care expenses now can give you the flexibility to choose to stay in a familiar, comfortable environment.

Ask your insurance professional for more information about long-term care coverage today! Contact us here or call (513) 239-8610.