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
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
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...