Q&A: What Concerns People the Most When it Comes to Long Term Care Insurance?
Concern #1: Is it too expensive?
It is important to understand how large a policy you need so you don't overbuy long term care insurance. When meeting with clients, Tom works to understand whether they will have other revenue streams in retirement, such as a pension, in which case they may not need to apply for as robust of a policy as they may think. Basic long term care solutions can be designed for just about any budget.
Concern #2: Will my policy go up in price?
Although no one can guarantee that premiums won’t increase on typical LTCI policies,
according to the Society of Actuaries
, there is less than a 10% chance of a price increase on the products being sold today. Additionally, clients can always drop the policy if there is a price increase and then receive a paid-up policy equal to the premiums paid. Hybrid life or annuity solutions do offer guaranteed premiums, if that is a concern.
Concern #3: What if the policy never gets used?
Although there is no cash value, the newer hybrid life/long term care policies act in a way that if you never use it, you get your money back. Return of premium riders are also available on some policies. The reality is, we all have auto insurance and homeowner’s insurance, but we never hope to never suffer a loss requiring claim on those. Long term care insurance exists to help protect you and your loved ones from the consequences of an extended care event. Hopefully you will live a long and healthy life, requiring little care.
- Check-out Tom's on-demand webinar, which outlines the four options people have for managing long term care, including how Medicare and Medicaid work in conjunction with long term care costs.
- Contact Tom at 612-250-3784 for a five-minute call. During this call, Tom will gather some basic information and will then email you additional material, including quotes. From there, Tom will follow-up with you on additional next steps.