Long-term care policies are available from insurance companies. Federal employees can also obtain them through the federal FLTCIP program. LTC (long-term care) policies offer a wide variety of features.
Some policies may pay for care not only in a nursing home but also in an assisted living facility or at the home of the person who requires care.
Policies may also include cost-of-living adjustments, which will increase future benefit payments.
Some companies also offer LTC policies that cover both spouses at a discounted rate, rather than having to purchase two separate policies.
Fed Week’s recent article, “Selecting among Long-Term Care Options to Hold Down Costs,” explains that there also are life insurance policies that double as LTC insurance.
Therefore, if these policies cover long-term care expenses; the policy’s death benefit will be reduced.
However, if long-term care is not needed, the insured individual’s beneficiary eventually can receive the full death benefit.
Remember also that the ongoing premiums will be lower, compared with policies bought when a person is older.
When you’re shopping for LTC insurance, there are some tactics that can reduce your policy cost. Here are just a few:
- Reduce benefits. A policy that pays benefits as long as you need long-term care can be very expensive. However, a policy with a five-year maximum payout will be less expensive. There are not many people who will need more than five years of long-term care.
- Wait longer. You can reduce costs, by extending the period before you collect benefits. A policy with a 90-day waiting period will be less expensive than an LTC policy with a 20-day wait. Of course, this is only a bargain, if you can afford to pay for 90 days from your own resources.
- Avoid automatic inflation increases. A policy that increases your benefit each year from $100 a day to $105 to $110, etc., will be very costly. You can go with a “future purchase option.” This will let you to buy more coverage, if you need it, even if your health has declined.
Reference: Fed Week (June 27, 2019) “Selecting among Long-Term Care Options to Hold Down Costs”