Broker Check

Ways to Fund Long-Term Care

| October 17, 2018

With life expectancy continuing to rise as care costs grow with it, finding sustainable funding for long-term care (LTC) needs can be a challenge. Here are three ways to fund your LTC.

  1. Annuities – Annuity-LTC hybrid products deliver a lifetime income stream that increases in the event of an LTC need. It’s suggested that pure LTC products are best, but if you’re declined LTC coverage by an insurer, annuities can serve as a healthy backup.
  1. Life Insurance – Whole, term, or universal life insurance can all be converted into an LTC account. During this conversion, the policy ownership is transferred to an entity that acts as a benefits administrator, who takes on the responsibility of premium payments.
  1. Qualify for Medicaid – The government assesses income and asset levels when deciding who qualifies, so once total assets are low enough, Medicaid will kick in. However, it should be noted that private insurance will likely provide a better quality of life.

Are you prepared to fund LTC in the future? If you’re not, don’t fret. We’re here to assist in you in your LTC planning. Give us a call to learn more about your annuity options.

The information within this article is for educational purposes only and does not constitute legal or tax advice. Customers should consult their legal and/or tax professional regarding their own unique situation.  Insurance product features, benefits and guarantees are based upon the claims paying ability of the issuing insurance company.

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