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37 - Planning Controllables Part 9 - Establishing Long Term Care Insurance

37 - Planning Controllables Part 9 - Establishing Long Term Care Insurance

March 31, 2023

Ideal For: Individuals Acknowledging the Need for Long-Term Care Insurance

Demystifying The Strategy: Long-term care insurance provides coverage for personal and custodial care for individuals who are unable to perform basic activities of daily living.

Who Stands To Gain? Anyone who wants to secure their future against the high costs associated with long-term care.

Your Next Steps:

  1. Employer-Provided Insurance: Many employers don't offer long-term care insurance as part of their group benefits package. If your employer doesn't, consider requesting that your HR department adds it. Alternatively, you can purchase your own long-term care insurance.

  2. Work with a Licensed Insurance Broker: Seek out a broker who specializes in long-term care insurance to guide you through the process.

  3. Adjust the Elimination Period: Consider a longer Elimination Period – the waiting period before benefits kick in – to potentially save on premiums.

  4. Understand Available Riders: Be clear on the benefits and costs of any optional riders before making a purchase.

  5. Prepare for Increasing Premiums: Long-term care insurance premiums tend to rise over time. Make sure your plan factors in these increases.

  6. Consider Hybrid Products: Some life insurance and annuity products offer features similar to long-term care insurance and may be a suitable option for your needs.

  7. For Those with Health Issues: If you have health issues preventing you from qualifying for long-term care insurance, you might consider life insurance with a "chronic illness" rider. This rider allows policy owners to access the death benefit under certain conditions while the insured person is still alive.