A little-known insurance option can be an answer for some people who might need care but are unable to buy long-term care ins...Read more
Can't Afford a LTC Insurance Policy? Consider Cutting the Length of Coverage
- June 30th, 2009
Most people can't afford to buy a gold-plated long-term care insurance policy that offers a large daily benefit covering any possible need and that will continue paying indefinitely. If premiums for this type of Cadillac plan are not in your budget, what should you cut, the daily benefit amount or the number of years of coverage? Most financial experts advise cutting the length of coverage. This is because if you don't use the full daily benefit, you don't lose it. In fact, it can be used to lengthen your period of coverage.
Think of a long-term care insurance policy as a pool of funds for long-term care. So, for instance, a two-year policy paying a daily benefit of $200 is really a $146,000 long-term care fund (365 x 2 x $200). If the policyholder draws on the policy at the rate of $100 a day for one year, she will still have $109,500 ($146,000 - $36,500) to pay for future long-term care costs, whether at home, in assisted living, or in a nursing home -- no different than if she had purchased a four-year policy paying $100 a day in benefits.
For more on long-term care insurance, click here.
Local Elder Law Attorneys in Ashburn, VA
Hale Ball Carlson Baumgartner Murphy PLC
Attorney Samantha Simmons Fredieu is an associate at Hale Ball. Ms. Fredieu graduated magna cum laude from Vermont Law School where she was the symposium editor on the Vermont Law Review, a production editor on the Vermont Journal of Environmental Law, and a member of the Moot Court Advisory Board. She has clerked for...
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...