What Types Of Long-term Care Insurance Are Available?

Many people assume that the only time they will have a need for long-term medical care is when they age, but this is not always the case. Individuals who are involved in serious accidents, or who suffer from serious illness at a young age, may have a need for special medical care in a facility or in the home. If you want insurance that will pay for long-term care expenses, you should learn about the various types of benefits that you can purchase, and how each type can benefit you based on your needs.

Annuities With Long-term Care Benefits Built-in as a Rider

Annuities are investment vehicles to which individuals contribute to provide them with an income stream following retirement. These investment vehicles can be purchased with a Long-term care (LTC) rider, which increases the amount of the annuity when it is used to cover LTC expenses. One of the advantages to taking the annuity approach is that the cost is less expensive than an insurance policy. Another advantage is that you will still have access to the money in your annuity, and you do not have to worry about being denied for coverage due to health underwriting.

Long-term Care Insurance

Long-term Care Insurance is a specialized insurance policy that is designed to pay for medical expenses up to a monthly limit after a waiting period. One of the great things about a LTC policy is that it can be customized to suit your budget. By selecting a longer waiting period, buying coverage while you are younger, or choosing a smaller monthly benefit, you can keep the premiums low. Applicants must pass a medical exam and the underwriting process to qualify for coverage. If applicants wait until later in life to apply, premiums tend to be much more expensive.

Life Insurance Products With Special LTC Riders

Another alternative method that financial consultants are recommending is to buy a life insurance product with a LTC rider. This method involves purchasing a permanent life insurance policy that builds cash values. With the rider, you select your coverage terms and if you ever trigger the requirements for coverage, the death benefit will be used to cover LTC expenses on a prearranged schedule until the benefits are exhausted.

There are several different ways that you can purchase LTC benefits, and choosing the right method to purchase coverage is important for your future. Distinguish between traditional long-term care benefits or hybrid options, compare costs, and find a financial vehicle that offers you the most advantages.

Sources:
http://money.msn.com/health-and-life-insurance/3-kinds-of-long-term-care-coverage
http://www.naic.org/documents/consumer_alert_ltc.htm