“Traditional” long-term
care insurance
From the standpoint of optional benefit features, this is the most flexible product type. The premiums for most, but not all, of these products are paid on an ongoing basis, much like one pays for home or auto insurance. Premiums are designed to stay level throughout the life of the contract, however premiums are typically waived while the policyholder is “on claim”. Many traditional long-term care policies can be purchased as “joint” policies in which spouses or partners can share benefits. It can be said that one gets “the most bang for the buck” with a traditional LTC policy.
Hybrid insurance products
These are also referred to as “asset-based” or “linked benefit” plans. These policies combine either life insurance or an annuity with long-term care benefits. The benefit amount for long-term care is typically a multiple of the life insurance death benefit or the annuity value. If you were to die and never need long-term care, most if not all of your paid premiums are returned to your beneficiary. In some cases, you can even get most or all of your premiums back if you change your mind and no longer wish to keep the policy. Premiums for hybrid policies can be paid with a single premium at the outset or paid over a number of years. Premiums for hybrid policies are generally guaranteed not to change.
Life insurance with a
Chronic Illness Rider
These policies allow the policyholder to accelerate his or her death benefit to pay for long-term care expenses. The threshold for qualifying for benefits is typically more stringent than under either a traditional or hybrid product. The amount of insurance available to pay for a chronic illness is often only a portion of the policy’s death benefit.
“Point-of-Need” solutions
There are some less well-known solutions for folks who are on the doorstep of needing care but are not able to medically qualify for the purchase of the above products due to a deteriorating medical condition.
Self-Funding
Electing to forego any of the above is a viable solution for some. Repositioning an existing asset to make a single-premium purchase of a long-term care product – and thereby avoiding future premium obligations – is considered by some to be a form of self-funding.
Pat, thank you for helping our clients navigate through the maze of long-term care products. We appreciate you taking the time to help them understand how long-term care insurance can protect them and their families from possible financial destruction. We are grateful for the opportunity to work with you.
Pat, I want to thank you for the assistance you have given our mutual clients in securing peace of mind in facing the very real problem of nursing home costs. You are instrumental in having our clients obtain the best defense to this problem - long-term care insurance.
I have worked directly with Pat Stopulos for my entire 30-year career as an estate planning attorney. He has helped many of my clients with long-term care planning issues. He has been an invited speaker to workshops we sponsor to educate consumers on various important issues. I am extremely comfortable introducing my legal clients to Pat. He always provides a thorough, independent and professional analysis.
Pat, I wanted to take a moment and again thank you for your long-term care services to many of our clients and also members of my family. Your prompt communication, clear outline of possible coverages and excellent follow up is appreciated.
I have received calls and comments from clients thanking me for my suggestion to call you. The expense of long-term care is a frightening issue for many. Your compassionate yet “to the point” style and your thorough knowledge of this important protection is appreciated.
Professional, knowledgeable and patient describe Pat Stopulos. Without his guidance and explanation of policy details, we would have been at a loss as to the best choices to fit our specific desires for a long-term care plan. I would highly recommend him to anyone.
We attended one of Pat’s seminars where we learned that we could use our annuities to fund a long-term care plan tax-free through a 1035 Exchange. His knowledge and patience helped us choose the right plan for us.
Contact Us
If you wish to learn more about long-term care solutions, we invite you to contact us. If you are an attorney or financial advisor and have a client who you believe could benefit from a conversation about long-term care strategies, we would welcome the opportunity to work with you.
