New Ways to Pay for Long Term Care
The insurance industry is constantly changing in an effort to provide policy holders with the best possible coverage while reducing risk to the policy providers. But frequent change does have its drawbacks and a tough economy doesn’t help matters. For instance, consumers are more hesitant about purchasing long term health insurance plans for seniors because (a) they worry about losing their money should they die before they can collect on it, and (b) many people don’t consider preparing for the future a cost-effective decision when they have to worry about today’s budget obligations. While both of these objections have their merits, there are two facts that everyone needs to know – everyone gets older and long term medical or assisted living care, should you need it, is very expensive.
If you haven’t thought about the costs associated with long term care and assisted living services, then you really should. In 2011, the average cost for a one-year stay in a private room at a nursing home cost $77,000 and every year that number grows by about five percent. During a time in your life when your income is going to be far less than what you were making when you were working, long term care costs could quickly eradicate a savings account or retirement fund. Luckily, there are a few alternative options for consumers where they can combine their long term care insurance policy with another type of policy so regardless of what their future holds, their families will be protected.
Long Term Care + Annuity Policies in NC
A long term care/annuity combo policy is an attractive insurance option for someone who already has a deferred annuity. They can exchange their current annuity for this type of policy tax-free and, depending on your policy, you may be able to leverage your investment dollars three to one. In other words, if you have $150,000 invested in your annuity, that amount could be used to pay up to $450,000 in long term care benefits. In addition, as long as you use the funds for long term care costs, the money you withdrawal is tax-free. Any funds remaining in the policy after you pass away may be left to your heirs (minus any final payouts for long term care-related costs).
Long Term Care + Life Insurance Policies in NC
In long term care/life insurance policies, you have the choice to either invest a lump sum into the account (which will protect you from premium increases) or pay premiums on the policy over a period of time. The funds continue to grow over time until you’re ready to use the money to pay for your long term care needs. Or, if you pass away before you have a chance to use the long term care component of the plan, your heirs will inherit a percentage of the policy amount.
Longevity Insurance in North Carolina
Longevity insurance helps protect you from outliving your savings. In essence, it is an annuity that does not pay out until you reach a certain age, usually 85 years old. It also acts as a financial safety net so you will have funds available for paying for long term care services during a time in your life when you will be more apt to need them.
The downside to longevity insurance is that the money you deposit into the plan is locked up until you turn 85, so even if you suddenly need the money, you can access it. Also, since most longevity insurance policies do not include a death benefit, any money you have invested in the plan will be lost should you die before you can collect it and your heirs won’t be eligible to collect the balance either.
Learn More About Senior Insurance in NC
Schnitzer-Slate is a leading provider of insurance plans in North Carolina and we have a wide range of different insurance policies available for seniors to choose from. To learn more about health insurance plans for seniors or any of our other products for retirees, just visit our website at http://healthplannc.com/ or call us at 910-338-3079. We’ll be more than happy to assist you in finding the perfect plan to suit your needs.
The insurance industry is constantly changing in an effort to provide policy holders with the best possible coverage while reducing risk to the policy providers. But frequent change does have its drawbacks and a tough economy doesn’t help matters. For instance, consumers are more hesitant about purchasing long term health insurance plans for seniors because (a) they worry about losing their money should they die before they can collect on it, and (b) many people don’t consider preparing for the future a cost-effective decision when they have to worry about today’s budget obligations. While both of these objections have their merits, there are two facts that everyone needs to know – everyone gets older and long term medical or assisted living care, should you need it, is very expensive.
If you haven’t thought about the costs associated with long term care and assisted living services, then you really should. In 2011, the average cost for a one-year stay in a private room at a nursing home cost $77,000 and every year that number grows by about five percent. During a time in your life when your income is going to be far less than what you were making when you were working, long term care costs could quickly eradicate a savings account or retirement fund. Luckily, there are a few alternative options for consumers where they can combine their long term care insurance policy with another type of policy so regardless of what their future holds, their families will be protected.
Long Term Care + Annuity Policies in NC
A long term care/annuity combo policy is an attractive insurance option for someone who already has a deferred annuity. They can exchange their current annuity for this type of policy tax-free and, depending on your policy, you may be able to leverage your investment dollars three to one. In other words, if you have $150,000 invested in your annuity, that amount could be used to pay up to $450,000 in long term care benefits. In addition, as long as you use the funds for long term care costs, the money you withdrawal is tax-free. Any funds remaining in the policy after you pass away may be left to your heirs (minus any final payouts for long term care-related costs).
Long Term Care + Life Insurance Policies in NC
In long term care/life insurance policies, you have the choice to either invest a lump sum into the account (which will protect you from premium increases) or pay premiums on the policy over a period of time. The funds continue to grow over time until you’re ready to use the money to pay for your long term care needs. Or, if you pass away before you have a chance to use the long term care component of the plan, your heirs will inherit a percentage of the policy amount.
Longevity Insurance in North Carolina
Longevity insurance helps protect you from outliving your savings. In essence, it is an annuity that does not pay out until you reach a certain age, usually 85 years old. It also acts as a financial safety net so you will have funds available for paying for long term care services during a time in your life when you will be more apt to need them.
The downside to longevity insurance is that the money you deposit into the plan is locked up until you turn 85, so even if you suddenly need the money, you can access it. Also, since most longevity insurance policies do not include a death benefit, any money you have invested in the plan will be lost should you die before you can collect it and your heirs won’t be eligible to collect the balance either.
Learn More About Senior Insurance in NC
Schnitzer-Slate is a leading provider of insurance plans in North Carolina and we have a wide range of different insurance policies available for seniors to choose from. To learn more about health insurance plans for seniors or any of our other products for retirees, just visit our website at http://healthplannc.com/ or call us at 910-338-3079. We’ll be more than happy to assist you in finding the perfect plan to suit your needs.