LONG TERM CARE COSTS
LONG TERM CARE INSURANCE FOR WEALTHY VERSUS SELF-FUNDING
PROS AND CONS
Wealthy will gamble that they will have enough resources to pay for LTC if needed and self-insure. A high-deductible LTC policy can provide immediate, tax-free leverage without waiting for the investments to grow.
Reimbursements are received tax-free versus taxable investment income.
To protect against going on Medicaid, running through inheritance, being forced into a nursing home as the only option if the LTC event last a long time. Lifetime continuation of benefits available-if add an annual premium.
Joint protection-for a couple- policies are available.
If never use LTC can bequeath a “second-to-die” death benefit.
Not like the “stand-alone” LTC policies that were underpriced (mispriced) and have had to raise premiums. The insurance company will use your assets first and If those aren’t enough will then pay the extended claims.
The downside of not being insured versus the cost of being covered is worth the investment since…..
These premiums “guaranteed” never to increase.
Insurance company has 25 years of service for product and designed properly-wasn’t underpriced and forced to raise premiums. Designed as a high deductible policy. (Company has a high financial rating versus its competitors).
Return of premium if “don’t trust” or want a refund.