3 Plan Types for Long-Term Care Planning
These differences highlighted below are just some of the considerations used when planning for long-term care.
Be sure to consult your trusted ACSIA Partners LTC Specialist for further details.
Comprehensive
Traditional Comprehensive LTC Plans
Strengths:
- Most LTC protection for premium
- Customizable with Optional Riders
- Couple Discounts
- Tax-deductible premiums up to IRS limits
- Tax-free benefits
- Payment Options: Lifetime: Annual, Semi-Annual, Quarterly, Monthly-ACH; Limited: 10-Pay, Lump Sum
Things to Consider:
- Stringent medical underwriting to qualify includes: Cognitive Assessment, Phone or In-Person Medical Interview, and Full Medical Records Retrieved
- Premiums not guaranteed to remain level
- Premiums paid for unused benefits not reimbursed, except with a rider
Hybrid
Hybrid Long-Term Care Plans
Strengths:
- Guaranteed Outcomes for LTC, Death and ROP
- Guaranteed Premiums
- Life Insurance or Annuity with Maximum LTC benefit
- Tax-free benefits
-
Payment Options:
Lifetime: Annual, Monthly-ACH
Limited: 5, 10, 20 yrs, to 65, Lump Sum
1035 Tax-Free Transfers:
– Cash Value from Existing Life Insurance
– Non-Qualified Annuities (1035 tax-free exchange)
Things to Consider:
- Higher premiums than Comprehensive plans because insuring for multiple potential outcomes
- Premiums may be tax-deductible up to IRS limits
Alternative
Alternative Short-Term or Recovery Care
Strengths:
- Flexible for both Short-Term Care (Recovery Care under 90 days) and Long-Term Care
- 90-day plans available to cover Elimination Period for Comprehensive or Hybrid, Life & Annuity plans
- Premium Stability
- Tax-free benefits
- Payment Options: Annual, Monthly-ACH
- Simplified Medical Underwriting
Things to Consider:
- To achieve more robust pool of money benefits seen on Comprehensive plans can own multiple policies
- Premiums paid for unused benefits not reimbursed