Long-Term Care Insurance (LTCI) is the ultimate pre-planning tool for retirement-aged clients. It provides coverage in the event they require a nursing home stay, assisted living, or home health care at some point in the future. Traditional LTCI functions like a typical insurance policy where the owner pays a premium now in exchange for future benefits. The policy has zero cash value and can be structured to meet the specific needs of each client.
BENEFITS OF TRADITIONAL LONG-TERM CARE INSURANCE INCLUDE:
Policies Tailored to Each Case
Traditional LTCI can be structured in a variety of ways. Premiums can be paid in one single payment, over ten years, or over the lifetime of the insured. Additionally, the daily or monthly benefit amounts and the duration of benefits are flexible based on your client’s needs. Policies can also be structured with a return of premium and/or cash surrender riders.
Multiple Facility Options
Purchasing LTCI gives your client the option of residing in the facility of their choice, including at-home care and assisted living facilities. On the other hand, if they require Medicaid benefits, they are more limited to where they can receive care and often must reside in a nursing home to qualify.
Eligible for State Partnership Program
Traditional LTCI offers state partnership program eligibility (available in most states), which provides an added benefit for clients who exhaust all their LTCI benefits. For the policy benefits paid on behalf of the client, that same amount will be exempt for Medicaid, allowing clients can seek Medicaid eligibility while preserving their assets and without adhering to the typical spend-down rules.
Protected Premium Investment
When purchasing Traditional LTCI, your client can opt for a policy with a guaranteed return of premium option. In the event they never require long-term care, their beneficiaries will receive a death benefit in the amount of premiums paid.
TRADITIONAL LTCI MAY BE RIGHT FOR YOUR CLIENT IF THEY:
Are in good health and between the ages of 30 and 79
Are worried about their future long-term care
Want a cost-effective LTCI policy
Want peace of mind
ADDITIONAL PRODUCT INFORMATION
Those who purchase Long-Term Care Insurance have typically been affected by the long-term care experience of a loved one. This policy is a perfect choice for the adult children or healthy spouse of your crisis Medicaid planning clients. They’ve seen firsthand the hardship of long-term care, and many will want to take the necessary steps to prevent the same from happening to them.
Traditional LTCI is ideal for healthy clients between ages 30 and 79. It is a cost-effective option for those who don’t necessarily have a large lump sum to invest but still want to protect their financial future. Since it has no cash value, Traditional LTCI may also be appropriate for a healthy spouse whose partner is seeking Medicaid benefits.
In an effort to combat the fear of being denied LTCI coverage, we offer anonymous pre-screening to help determine whether your client would likely qualify. If they are a good candidate, they can proceed with confidence through the process. If not, we’ll advise on this up front and save them from having an official LTCI denial on their record.
Since Traditional LTCI has no cash value, a policy may be used in some Medicaid planning cases that involve a healthy community spouse. The benefit is two-fold: the ill spouse can gain eligibility for Medicaid benefits, and the healthy spouse can protect their own financial future should they also require long-term care in the future.
INTERESTED IN TRADITIONAL LONG-TERM CARE INSURANCE?
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