© 2019 Long Term Care Alternative Insurance

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www.longtermcarealternativeinsurance.com is an insurance brokerage that educates clients on Long Term Care Insurance alternatives and assists in the application process.   Life & Health Agent License for Zachary Taylor Agent #0M60573.                      

Contact Us   213.784.1481 | zack@lucentelmgroup.com  | 3460 Torrance Blvd. Suite 300, Torrance, CA 90503

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FAQ

Does medicare pay for assisted living?

Medicare only covers assisted living expenses when skilled nursing is required following an injury or illness that necessitates a 3+ day hospital stay.  The first 20 days of skilled nursing are covered, and after that patients are required to pay a co-pay of $170.50 per day for an additional 80 days as of 2019.  After 100 days total there is no more coverage.   

What are long term care insurance alternatives?

LTC insurance alternatives are asset based, life insurance products that have additional long term care benefit riders, as well as beneficiaries if you don’t end up needing the LTC benefits.  A single premium fixed annuity can offer LTC benefits, as can a permanent life insurance policy if those riders are selected.

 

What are long term care facilities?

Long Term Care Facilities include Adult Day Health Care Centers, Nursing Homes, Skilled Nursing Homes, and Assisted Living Facilities.  They are intended to help people with chronic impairments such as mobility issues, toileting, bathing, dementia, and Alzheimer’s. 

What are alternatives to long term care insurance?

LTC insurance alternatives are asset based, life insurance products that have additional long term care benefit riders, as well as beneficiaries if you don’t end up needing the LTC benefits.  A single premium fixed annuity can offer LTC benefits, as can a permanent life insurance policy when those additional riders are selected. 

What are the best alternatives to long term care insurance?

Annuities and life insurance policies with Long Term Care benefit riders offer LTC benefits if you need them, or you can leave your premiums to a beneficiary if you don’t.  They offer a use it or keep it scenario where policy owners are made whole 100% of the time.   

What is a long term care insurance annuity?

Similar to a traditional deferred fixed annuity, clients move a lump sum of money into an annuity.  The annuity offers long term care benefits if you enter a long term care situation while also offering a small interest rate as well.  The insurance company offers to double or triple your principle should you enter a long term care situation, and if you don’t, you can leave the money to a beneficiary or get it back after the contract surrender period. 

How much does long term care cost?

An assisted living facility or nursing home in 2019 costs around $8k per month depending on where you live, and having someone come to your home to help for 8 hours a day also costs around $8k a month.   Help that comes to your home only 4 hours a day will be closer to $4k per month.

 

How much are long term care insurance costs?

Traditional long term care insurance costs vary depending on your age when you started the policy as well as the amount of benefits you choose to receive.  In essence, it is very expensive.  As an alternative, you can get a single premium fixed annuity with a long term care benefit rider, which has a $35k minimum.  The amount of insurance you want to receive is based on how much you want to put into the policy.  The insurance company offers to double or triple your money if you end up needing long term care coverage depending on your current age and health when you apply. 

What is single premium insurance?

A single premium long term care insurance policy is an annuity with a long term care benefit rider.  The policy owner puts a lump sum of cash into the policy, and the insurance company offers to double or triple your principle should you enter a long term care situation.  If you don’t need it, you can leave your principle investment to a beneficiary or get it back after the surrender period.  

Can I use my 401k to buy long term care insurance?

Alternative long term care insurance companies have created an opportunity to use retirement money to fund long term care insurance.  The money is rolled over into an annuity, and the annuity pays an annual premium to a life insurance policy with a long term care benefit rider over time.  Taxes are due on those annual withdrawals, but this scenario allows the policy owner to keep annual taxable income lower while helping to meet your required minimum distribution.   

Can I use my IRA to buy long term care insurance?

Alternative long term care insurance companies have created an opportunity to use retirement money to fund long term care insurance.  The money is rolled over into an annuity, and the annuity pays an annual premium to a life insurance policy over time.  Taxes are due on those annual withdrawals, but this scenario allows the policy owner to keep annual taxable income lower while helping to meet your required minimum distribution.   In a determined number of years the life insurance policy is paid off, and offers long term care benefits if you need them.