Three Different Strategies to Address Extended-Care Planning
1. Traditional LTC Insurance has been the most popular method of addressing the risk of extended care over the past 40 years. When viewed in the same light as home or auto insurance, an LTC policy is a much more affordable way to cover the larger risk because you’re paying small amounts every year. Premiums are not guaranteed, however, even purchasing a small policy will be of significant value to your family.
2. Hybrid LTC Insurance is quickly becoming the new “go-to” solution for extended care planning. These policies have guaranteed premiums that will never increase and they will pay a death benefit to your heirs if you don’t need it for extended care. With these plans, you can protect your lifetime savings against the cost of care and at the same time you are guaranteed a death benefit even if you never use it for long term care.
3. Short Term Care Insurance, commonly called Recovery care, are plans that can cover the same type of services as traditional LTC policies, however, the benefits are shorter in length. These policies are very affordable and also are significantly easier to qualify for. These plans have become very popular for people with limited resources and/or people who have health problems that prevent them from qualifying for the traditional plans.
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