Long Term Care Insurance –
What is it?
Your Asset Protection Insurance Policy.
Long Term Care is the type of care received either at-home or in a facility, when an Individual needs assistance and/or cannot live independently due to a catastrophic illness or accident and they lose 2 of the 6 qualified activities of daily living:
- Severe Cognitive Impairment
What Are My Choices?
#1 – The current marketplace commercial carriers offering the new model of stand –alone individual Long Term Care Insurance (LTC) policies work on the same plan design criteria. Today’s new models are stricter in underwriting and medical questions along with gender rating for male vs. female.
*You choose Monthly Cash Benefit Amount …*You choose the type of care such as at-home or facility… *You choose the duration of the policy based on how many years.
These three components calculate up to a Lifetime maximum pool of cash benefit the policy will pay benefit once a qualified loss of 2 activities of daily living are qualified by your doctor and have satisfied the onetime 90 day elimination period. Benefit is paid to you or a designated beneficiary.
*Example: $4,000 Monthly Cash Benefit x 12 months a year x 3 years =
Lifetime Max of $144,000
#2 – Life Insurance and Annuity Sales now offer limited LTC benefits as an enhancement to the base plan of life insurance or annuity known as a LTC rider. The cash benefit is derived by a percentage of the base plan paid each month to a designated beneficiary.
#3. Existing group-employer sponsored voluntary plans still accepting new entrants via payroll. There are very few of these around but you should ask your Human Resource department if your employers has one of these. Most commercial carriers have left this marketplace or closed the group to sales for new entrants. Unum is the only company in the LTC marketplace today that supports new entrants in closed-group employer contracts via large public sector and commercial clients.
How and When do I Apply and Qualify?
The application and underwriting process will be different with each carrier. Shopping and comparing prior to the long, arduous application process is the key. Utilize a certified Long Term Care Specialist with a history of experience in the LTC market. These licensed insurance agents will have quicker access to quote, compare and provide what you determine you need as the process moves along. The insurance agent is compensated by the insurance carrier so no charge to you.
The medical questionnaire, depending on your level of application, could be as easy as simplified or could be as stringent as a doctor’s exam including mental acuity testing.
Applying when you are younger, and the healthiest you, will lock in a less-expensive monthly premium for the SAME Lifetime maximum benefit.