Posted by McKenna Burr on Apr 28, 2015

In Financial, Main


Long-Term Care Insurance

If you are taking a proactive approach for your own long-term care needs, Long Term Care Insurance, sometimes called Nursing Home Insurance may be a good option. Long Term Care Insurance is an insurance policy that pays for some or all of a senior’s long-term care costs in exchange for monthly premiums. Depending on the policy, medical services at home, adult day care, assisted living and nursing home communities can be included.

If one does not have long term care (LTC) insurance but has an immediate need to pay for long term care, this option probably will not help. Insurers typically do not accept new, elderly enrollees if they are already receiving or in need of care.

LTC insurance can be attractive because the monthly premiums are known in advance and therefore can be built into a budget. Plans are very flexible and can be structured to meet a variety of needs.

The cost of your long-term care policy is based on:

  • How old you are when you buy the policy
  • The maximum amount that a policy will pay per day
  • The maximum number of days (years) that a policy will pay
  • The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay.
  • Any optional benefits you choose, such as benefits that increase with inflation

Long Term Care Riders

Some life insurance policies and annuity contracts contain “Long Term Care Riders”. A rider is an addendum to the policy or contract that specifies specific benefits that the provider will pay to the contract owner to assist in paying for their own long term care needs.

Additionally, if the policy owner has been determined to be terminally ill, many of these contracts will advance a portion of the policy’s death benefit to the contract owner. Such advances can be utilized for hospice, assisted living and other expenses. Additionally, viatical settlements against life insurance policies may also provide a much needed source of cash to pay for end of life care. To determine if you have a policy or contract with rider benefits, visit with a financial professional who can guide you through the process.

Long-term care is something that most people will need during their lifetimes, whether they have planned for it or not. This report has described 5 resources that many people are unaware of that can be used to help with the costs of long-term care.

Remember, there is no single financial solution that is right for every person. Each person’s situation is unique. Families who need long-term care services should visit with a professional that can guide them through the maze of financial options available to them. By doing so, they can be assured that they have a personalized plan that will be best suited to meet their goals and provide their loved one with the care they need.


For more financial questions or advice, we recommend contacting Utah Senior Planning.

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