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HTA Insurance

Simplifying complex Insurance decisions

Long Term Care Plans

Many people mistakenly believe that Long Term Care expenses are paid by Health Insurance, Medicare, Medicaid or Disability insurance, but this is not true for many.  Unfortunately, individuals don’t realize their uninsured risk until they have had a personal situation occur in their family.  But, by that time it is too late to insure against this risk.  It is important that you review your options while you are still young and healthy enough to qualify for insurance.  You can visit our LTC Statistics and Trends webpage for more information on who is impacted by a LTC risk.

What is Long Term Care Insurance?

LTC Insurance provides an account of funds similar to a bank account set aside for you to use when you are no longer able to do normal daily activities.   When you need care, you can withdraw from these funds on a monthly basis to pay for care at home, adult day care, assisted living or nursing home.  These funds grow with guaranteed interest year after year, so the longer you hold the plan prior to using it, the more benefit you receive.

Who is a good fit for Long-Term Care Insurance

  • Business Owners in their 40’s – Great fit
  • Individuals & Business Owners in their 50’s – Great fit
  • Clients in their 60’s that can medically qualify- Good fit, but premiums are more expensive.
  • Clients in their 70’s- Okay fit, can still serve a need, but premiums can be higher and medical underwriting can be a challenge.

What Planning Solutions are available?

Traditional LTC:

When comparing premium vs. benefits, this gives you the biggest bang for your buck. You pay an annual premium (monthly, Quarterly or semi), and have access to an account of funds that grows with interest if you need LTC. There is no cash value.    You collect for LTC services only.  Designed for:

  • Clients who recognize the risk for LTCi
  • People who have been a caregiver or have seen loved ones cared for
  • People who are looking for the lowest cost approach for comprehensive LTC protection
  • Business Owners looking for Tax advantages
Short Term Care:

This will provide similar benefits to traditional long-term care but for a shorter duration, typically 1 year or less. Benefits can be quickly accessed and can be used to pay for short rehab situations.   Designed for:

  • Clients looking for a less expensive option
  • Clients with certain health issues or previously declined for traditional LTC
  • Older individuals (65yr+)
  • Worried about short-term rehab costs
Life Insurance with Accelerated Death Benefit for LTC: 

This is a life insurance policy that allows you to access the death benefit early if you need LTC. The premium is roughly double the traditional LTC premium. There is no cash value if you cancel, but would provide a death benefit if you did not need LTC.  You collect for LTC or at Death.  Designed for:

  • Individuals that don’t feel they will ever need LTCi
  • Concerned about increasing premiums
  • Have old existing life insurance policies with cash value (1035 transfer)
Asset Based: 

This will provide the LTC benefits your client’s desire. Also provides return of premium on cancellation, and a death benefit. Clients who have the assets to transfer like this approach, they take a lump sum amount. They also move the money into the Linked plan and better leverage it against LTC risk without losing control.  You collect for LTC, at Death or if you cancel.  Designed for:

  • People who have previously turned down the purchase of LTCi
  • Affluent- have set aside funds to ‘Self Insure’
  • Concerned about “Use it or lose it”
  • Concerned about increasing premiums
  • Want to maintain control of their money
For more education on LTC Planning, please call us at 610-430-6650
Or you can email LTC@HTA-Insurance.com