It’s Long-Term Care (LTC) Awareness Month, and whether you’re in the market now or just curious about insurance coverage choices for the future, it’s important to know where, why, and how to get answers.
There are three main options when it comes to LTC coverage.
- Traditional long-term care insurance: Also known as standalone long-term care insurance (LTCi), traditional policies exclusively cover long-term care expenses in your home or a facility.
- Hybrid long-term care insurance: Also known as linked benefits or asset based LTC policies, they pair long-term care with life insurance or an annuity. A hybrid policy provides coverage for both extended care in your home or a facility along with a death benefit. If you never need long-term care, your loved ones benefit from a life insurance payout after you die.
- Life insurance with a long-term care rider: Some life insurance policies let you add additional coverage for long-term care via a rider. A rider lets you use some of the life insurance policy’s death benefit to pay for long-term care needs while you’re still alive. Note that this option could impact the death benefit amount.
The right policy for you depends on your goals and circumstances, but how do you decide? Below are some questions to ask yourself before asking your financial professional for more in-depth information.
- Which type of coverage is most important to you? Think about how much life insurance, long-term care insurance, or both matter to you.
- How do you want to pay your premiums? Some policies let you pay every year for a set amount of time, while others allow you to pay a lump sum.
- Do you want the option of locking in your premium? Many linked benefits long-term care insurance policies offer guaranteed premiums. This means you never need to worry about premium increases while you own the policy.
- How is your health? If your health isn’t great, you may want to consider policies with more relaxed underwriting guidelines.
- What are the tax advantages? Life insurance benefits are almost always paid out tax-free, while premiums paid for long-term care insurance can sometimes be deducted from your state and federal taxes. Different policies let you reap different tax savings.
Still have questions surrounding long-term care options? As your dedicated team, we can help you find the right choice for your situation. Reach out to us at (540) 720-5656, and we’ll provide you with the information you need to make better-informed decisions.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.