How to Buy Long Term Care Insurance

There are three options for people who are shopping for long term care quote and thinking about purchasing long term care insurance and they are: stand-alone long term care policy, fixed annuity with ltc benefits and policy with riders.

They are unique in their own way and the decision is left to the consumers, what kind of policy they think would perfectly suit their needs.

Stand-alone Long Term Care Policy

According to the nonprofit Insured Retirement Institute, there are four risks to a stand-alone LTC policy: They can be expensive, they acquire no cash value, the premiums may increase, and the underwriting can be time-consuming.

One of the biggest issues here is the long term care insurance costs. You may be able to afford paying for your premiums for a year or two but what about for the following years. It is important to think of the future and see if you can afford to finish paying for this and not simply give up on this once you’ve out of cash.

Experts say that it is ideal to have a smaller policy rather than be ambitious and opt for the expensive one but can’t finish paying for it.

Fixed Annuity with LTC Benefits

This option is actually more affordable than the traditional long term care policy and aside from that you are also entitled to other benefits. It gives you  access to your money but with nominal fee, the cost of the LTC rider may be less than an LTC policy, and you can obtain coverage without health underwriting if you’ve been turned down for a stand-alone policy. There are disadvantages too like the steep upfront investment, the rider fee can eat into your annuity’s interest income, and you’ll be locking that money up today at a relatively low rate.

LTC Insurance with Rider

LTC experts suggest that if your need for long-term care is relatively short, meaning a year or two, consider a hybrid life product. But if your need is likely to be longer, you’re going to blow through the policy and be back on your own savings. Then you’re going to regret that you didn’t buy a traditional long-term care policy.”

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