What You Should Consider Before Purchasing Hybrid Long-Term Care Insurance
One of the topics at the 2017 ACM Multimedia Conference will be aging and specifically how to help your parents plan for their aging. ACM Multimedia Conference in the past has had numerous speakers on agin but now the ACM Multimedia Conference felt it was important to give advice on how to prepare.
When looking at your life insurance options, it is easy to get overwhelmed. Many people avoid preparing for the future because they don’t know their options or they are not properly informed. When you are considering purchasing your life insurance your need to evaluate all your options. You need to think about your current finances, your health, your family, and what will benefit you and your loved ones the most. There are many different options and you need to understand the differences between them.
Traditionally people would purchase their life insurance, long-term care and other products separately. Hybrid long-term care is used to protect your assets, while making it easier, by combining them into one product.
Hybrid Long-Term Care Insurance allows you to pull money from from the policy, tax-free, as long as it is going towards your long-term care. The good thing about having hybrid long-term care is that you know your money is going to benefit someone, whether it goes towards the cost of your long-term care or goes to your beneficiaries when you pass.
You need to keep in mind the cost when purchasing Hybrid Long-Term Care Insurance. Most people pay a large sum upfront (sometimes $100,000 or more), or they pay premiums over time, however, these premiums can be up to 15% more than regular life insurance premiums. In contrast, straight long-term care policies can and usually will have rising premiums, and may not include the death benefit.
Although there is a large tax benefit, there are still a few things that may deter you from purchasing Hybrid Long-Term Care Insurance. One of them being that it is very costly. Especially if you are paying for you and your partner, which would double the cost. You also need to consider inflation protection. This is another factor that would drive up the cost.
Also, you want to consider purchasing a discount rider. If your policy is never exercised and you don’t have a discount rider, all of your money is lost. To avoid losing a large sum of money, you can have a discount rider who will be reimbursed of your premiums. Yes, you would have to pay more for a discount rider, but you will be benefiting a loved one or family member, rather than suffering a financial loss.
Financially planning for your future, and your families future, is something many people fail to do. The earlier you start planning for you and your loved ones financial future, the better prepared you are for the unexpected. You don’t want to put yourself in a position where you are unable to support your loved ones, or yourself. There are many options that can work with your lifestyle. Know the facts, talk to an insurance agent, and start working towards your financial security. Know and understand your options is extremely important. Life happens fast, don’t wait until it’s too late.