Long Term Care Insurance Policy Enhancements Favor Consumers

Today we either know a caregiver or someone who needs long-term health care. The costs of long-term health care services are rising rapidly nationwide. Today's LTC Insurance offers the flexibility of benefits while maintaining affordability.

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Long Term Care Insurance Policy Enhancements Favor Consumers
2 Min Read August 28th, 2015 Updated:April 25th, 2024

Today's consumers will benefit from the policy enhancements available today with qualified Long-Term Care Insurance policies. With Generation X and the Late-Boomers headed toward retirement in huge numbers, the concern about the rapidly growing costs of long-term health care keeps consumers and their advisors up at night.

Enhancements available with today's Long-Term Care Insurance benefit consumers and their families. Policies today offer various inflation benefits to keep up with the growing costs of long-term health care services. Years ago, consumers only had a few options; today, the plans are very customizable, making them affordable for more people. 

Today's LTC Insurance Has Many Affordable Options

Jesse Slome, the executive director of the American Association for Long-Term Care Insurance, a national consumer education and advocacy, says that today's Long-Term Care insurance policies dramatically differ from those sold a few years ago.

Take the inflation growth option which can double or triple the cost of protection. Newer plans offer greater options that will save the consumer money and, at the same time, give them the flexibility to increase their insurance coverage in future years. 

Several insurance companies offer inflation options that increase benefits from 1 to 5% compounded. Most people select 3% compound inflation, but dropping the inflation rate can lower the premium and save money. Plus, a policyholder can increase the inflation rate later with some plans. 

As awareness grows about the implications of aging and long-term care, more people today recognize the importance of planning for the costs and burdens of aging. Many people understand how quality care will improve the quality of life for anyone needing long-term care services. However, the cost of long-term healthcare continues to rise across the country. This increasing awareness is driving more people to consider long-term care planning, and the latest policy enhancements are proving beneficial for many and making today's Long-Term Care Insurance more affordable.

Long-Term Health Care Costs are Up Sharply

The cost of long-term care can significantly impact an individual's or couple's financial stability, often adding $6,000 to $8,000 monthly to their expenses. You can understand how these costs can affect their lifestyle and financial legacy and how they can adversely impact your future retirement. 

While nursing homes are notoriously expensive, most long-term care is delivered at home or in assisted living. The costs for in-home care, adult day care centers, and assisted living facilities are also on the rise. Without a Long-Term Care Insurance policy, few people account for these costs in their budgets. Even those with substantial savings in their 401(k) can be impacted by these rising costs, not to mention the physical and emotional impact on loved ones.

The LTC NEWS Cost of Care Calculator is a tool that highlights the financial burden long-term healthcare expenses can impose. This calculator shows how care costs can vary significantly based on location and the type of services required, underscoring the importance of planning for these expenses in advance.

 How Much Does Long-Term Care Services Cost Where You Live?

Partnership LTC Insurance - Secret No Longer

Most states participate in the Long-Term Care Insurance Partnership Program. Those individuals who own a qualified Partnership LTC policy can shelter part of their estate based on the amount of benefits paid out by your policy. The partnership program is one of the biggest secrets in the retirement planning industry.

Today's Long-Term Care Insurance offers additional consumer benefits, consumer protections, and tax incentives. Shared spousal policies are also available, adding further flexibility. Couples can combine their benefits and more efficiently protect their assets at a lower cost.

Couples can also receive discounts just for being married or for being in a committed relationship - even if the other partner does not own a policy.

This is significant because the couples or partner discount reduces policy costs for a couple, but often, one spouse has health issues that prevent them from obtaining LTC coverage. 

LTC Insurance is Custom Designed

Long-Term Care Insurance plans are custom designed. The policyholder gets to choose the level of benefits within the policy. For example, let's say you will retire with a defined pension plus social security. Your income is guaranteed for life. You could design an LTC Insurance policy with smaller monthly benefits. 

With this type of policy design, you would use part of your retirement income and your LTC Insurance benefits to pay for your future care. Your premium will be lower, but you maintain asset protection and ensure you can access quality care options, including care at home. 

How Much Does Long-Term Care Insurance Cost Today?

Remember that long-term care is more than just about money. The consequences for your family can be life-altering for them. Instead of being caregivers, your loved ones will have the time to be family. Instead of managing professional care providers, the LTC Insurance policy's case management benefit helps them find quality care and develop an appropriate care plan. 

What Happens If You Never Need Long-Term Care?

Yet some consumers, maybe yourself, ask the question, what happens if I never need long-term health care? What happens to all that money? Today's Long-Term Care Insurance offers options for those people with that concern.

Some insurance companies offer return-of-premium options. The return-of-premium option will return the premiums you paid to your estate if you are lucky enough to never need long-term health care.

Hybrid policies that combine life insurance or annuities with a qualified rider for long-term care offer both a death benefit and a long-term care benefit. Actual hybrid policies meet federal guidelines under Section 7702(b) of the U.S. Code, meaning that they include consumer protections, tax benefits, and regulated triggers mandated by federal law. 

While the risk of needing long-term care services at some point in your lifetime is high, these types of plans guarantee you will benefit from the policy. 

This provides consumers with the 'if you don't use it, you don't lose it' benefit that makes buying the policy more attractive, especially to those in their 50s.

Rate Stable 

Plus, most states have rate stability guidelines that make the risk of premium increases in the future small. 

Most of us are aware that at some point, our health will decline, and we will need help with daily living activities or require supervision due to dementia. The cost of care is getting more expensive. Health insurance and Medicare pay for short-term skilled care only. Medicaid will only pay if you have little or no income or assets. 

Today's Long-Term Care Insurance, custom-designed to fit your needs and budget, will protect your income and assets. It will also reduce the stress and anxiety otherwise placed on those you love. 

Be sure to seek the help of an experienced, independent Long-Term Care Insurance specialist who represents the top-rated insurance companies. The specialist will match your age, health, and other factors to find the right plan.

Plus, you will have peace of mind knowing you will always have access to quality care options without being dependent on loved ones.





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About the Author

An LTC News author focusing on long-term care and aging.

LTC News Contributor James Kelly

James Kelly

Contributor since August 21st, 2017

Editor's Note

Long-Term Care Insurance is a powerful tool in managing the financial risks associated with long-term care. With an LTC policy, you gain access to guaranteed, tax-free funds that can be used to pay for high-quality care in any setting, including at home. This not only empowers you to choose the care that best suits your needs but also shields your savings and assets from the high costs of long-term services. It ensures that you, and not just your finances, are taken care of, allowing you to live with dignity and receive the necessary support without the added stress of financial burden.

However, planning for future long-term care is more than just a cash flow problem. An LTC policy ensures your loved ones have plenty of time to remain family instead of becoming caregivers.

Consider the peace of mind and security it can bring, knowing that you have a plan that lets you focus on enjoying life despite the aging and health challenges you may face.

The ideal time to add an LTC policy to your retirement plan is in your 40s or 50s; however, depending on your health, there are affordable options if you are in your 60s or older.

Seek Experienced and Professional Advice

Long-Term Care Insurance specialists are uniquely prepared to assist you in shopping and obtaining an affordable LTC Insurance policy. An LTC specialist completely understands individual company policies, benefits, and underwriting standards. This expertise empowers them to assist you in finding the most appropriate coverage at the most competitive price, simplifying the complex process of insurance selection. 

Premiums and underwriting standards vary dramatically between insurance companies. An LTC Insurance specialist will work with all the top-rated companies to compare and shop, providing you with accurate quotes from all the top companies offering long-term care solutions

Many Long-Term Care specialists possess the CLTC® designation, "Certified in Long-Term Care." This professional credential is awarded to those who have completed an educational program centered on long-term care planning. 

The Corporation offers this designation for Long-Term Care Certification. This independent non-profit organization establishes long-term care planning education standards.

Quality Caregivers and LTC Communities a Click Away

Finding quality caregivers or long-term care facilities for your older family members is simpler than ever with the LTC NEWS Caregiver Directory

The directory has over 80,000 listings nationwide. This free and comprehensive tool offers many options for long-term care services and makes it effortless to explore qualifications and services. 

If you're a care provider, you can claim your free listing or upgrade to enhance visibility through the LTC News Directory Business Portal.  

LTC NEWS also offers assistance in processing claims from any Long-Term Care Insurance policy. Partnering with Amada Senior Care, a renowned in-home health care agency, LTC NEWS ensures that you and your loved ones receive top-notch care without worrying about securing policy benefits. There is no cost or obligation for this service.

Experience peace of mind knowing you have access to quality care services when you need them most - Filing a Long-Term Care Insurance Claim.

Digital Advertising Options on LTC NEWS Benefits Your Website and Business 

LTC NEWS offers a variety of marketing and advertising solutions designed to help you effectively connect with your target audience. 

Traditional display advertising ensures that our readers see your message, while our native advertising and sponsored content articles offer a powerful strategy to drive traffic to your website, increase brand awareness, enhance SEO, and foster relationships with potential customers.

Advantages of Native Advertising and Sponsored Content on LTC NEWS:

  • Drives Website Traffic: Sponsored content articles are featured prominently on LTC NEWS's homepage and other areas with high visitor traffic, guaranteeing broad exposure to your message.
  • Increases Brand Awareness: These articles are crafted to educate and engage readers, establishing your brand as a leader in your industry.
  • Connects with Target Audience: LTC NEWS's readership includes individuals interested in long-term care, presenting a prime opportunity to reach potential customers who are already inclined toward your products or services.
  • Enhances SEO: Our sponsored content is optimized for search engines, helping to boost your website's visibility and ranking in search results.

This comprehensive approach to digital marketing on LTC NEWS can significantly enhance your online presence and lead to meaningful engagement with your desired audience.

Learn more about how LTC NEWS can help market your business, drive traffic, and improve SEO - Advertise With Us | LTC News.

LTC NEWS: Share Your News with Us

LTC NEWS is a leading website for news and information about aging, caregiving, health, lifestyle, long-term care, and retirement planning. We are always looking for new stories to share with our readers. 

If your group, organization, business, or political committee has news to share, we encourage you to submit a press release to us.

You can submit your press release - newsroom@ltcnews.com 

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