As individuals age, the need for long-term care becomes more apparent. Unfortunately, many seniors feel that they are unable to afford long-term care due to its high costs. While long-term care may be prohibitive to individuals on a fixed income, there are still others ways to pay for long-term care without paying out of pocket.
Hybrid life insurance policies have been created due to the reluctance of certain consumers to buying long-term care insurance by itself. These policies guarantee long-term care coverage, or a death benefit if long-term care is not used. One type of hybrid policy is a “single premium” policy that provides traditional life insurance with a rider that provides some LTC coverage. Other types of hybrid policies are whole life and universal life policies with an LTC rider that allows you to pay premiums monthly or quarterly. For some policies, even if long-term care coverage is initiated, the remaining money go towards the death benefit.
Other policies allow the opportunity receive a tax-free advance while the policyholder is alive, called an Accelerated Benefit Rider (ABR). Depending on the type of policy, ABRs may be available if you are in a nursing home or using long-term care services. However, ABR payouts tend to be less than payouts from a typical long-term care policy. ABR features tend to require little or no health screenings.
Nonetheless, you can rest assured that there are many ways to pay for long term care. Call your WellPath Partners or visit our website to learn more. WellPath Partners are here to guide you every step of the way because we prioritize your care.
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