Best Long-Term Care Insurance Plans for You

Exploring Long-Term Care Insurance Plans: Which One is the Best for You?

Old age comes with several medical problems, no matter how much you wish, and try to avoid them. In certain situations, nursing care or assisted living facilities become necessary, but they come with substantial costs. Meeting these needs requires significant financial resources. 

Thus, you need a long-term care insurance plan. It is an insurance plan which works better than Medicaid and offers more benefits. 

This guide discusses long-term care insurance plans in Phoenix, their types, and which is the best for you. So, read on.

What is Long-Term Care Insurance?

It is an insurance plan which covers nursing care, assisted living care, home health care, adult day care, etc. It is suitable for people who cannot do their daily tasks independently or lack the cognitive abilities to do them. This plan works for people above the age of 65 years. Those under 65 are also covered if they suffer from a chronic disease.

Long-term care insurance is better when you need more than hospice care. People who require help doing at least two activities – bathing, dressing, eating, toileting, continence, and transferring, are eligible for coverage under long-term care insurance. Learn more about the basics of long-term care insurance here.

Types of Long-Term Care Insurance

There are two types of long-term care insurance – traditional as well as hybrid. Learn about both types to choose the right one for you. 

Traditional Long - Term Care Insurance

This type of LTC insurance is the most common, as it has been around for over 50 years now. Policyholders have the flexibility to personalize their policies and make key decisions regarding factors such as the daily or monthly benefit limit and the lifetime benefit limit. The type of benefit and the limit you choose determines the premium cost. 

This plan offers comprehensive care, and you can significantly lower your adult daycare bills. First, however, you must prove that you need LTC.   

Customizations and Add-Ons

Traditional LTC allows customization and add-ons such as inflation riders. It ensures that the inflation rate is considered while disbursing your benefits.   

Hybrid Long- Term Insurance

Hybrid LTC is a combination of long-term care insurance with life insurance or annuity. The distinction lies in the fact that a hybrid LTC plan offers a death benefit. For example, you bought coverage for $500000. But you only used $200000 on your nursing care or home health care. The remaining $300000 shall be paid to your nominees. It kills two birds with one stone, as the death benefit and long-term care are assured.  

Asset Based Protection

This is also a type of Hybrid LTC. Asset-based LTC requires repositioning low-yielding assets in lieu of premiums. For example, you have a home worth $100,000, and your premium amount also comes to $100,000. It makes your net premium payment zero dollars against your home. 

The benefit of asset-based protection is that the premiums are guaranteed to remain the same, any death benefit will be paid to the beneficiary tax-free, and if you wish, you can always surrender your provision and return to premium payments. 

Life Insurance with Long-Term Care Insurance Rider

It is a life insurance policy that allows you to add an LTC rider. The significance of the plan is on life insurance, but if you need long-term care, you will get the required coverage which shall be deducted from your death benefit. For example, you bought life insurance of $500,000 with an LTC rider. You needed long-term care for a few months and utilized funds to the extent of $45000. Therefore, the death benefit payable shall be $455,000. 

Life Insurance with Long Term Care Benefits

This is another type of hybrid LTC that merges life insurance and LTC. The policy answers the question- “what if you outlive your death benefit?” 

You needed long-term care, and your death benefit ran out in 3-5 years. What now? This type of policy ensures that you receive long-term care for another two-five years, thus extending your coverage up to 10 years or more. 

Which Policy is the Best for You?

Determining the answer to this question is not a simple task since each policy comes with its own set of terms and conditions. Therefore, relying solely on this guide for a decision is not feasible, but you’ll have the necessary knowledge to ask pertinent questions to your insurance agent.

Heroes Financial Group is the best place to find an insurance agent to help you pick the right long-term care insurance in Phoenix. Our agents understand your needs, listen intently to your doubts and queries, and suggest the best. Then, based on your unique circumstances, we can help you pick the best insurance policy for your loved ones.

Contact us today for more information!  

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