Long Term Care

Long term care (LTC) insurance lets you plan for the worst, with the option to have the best. You can decide where you want to receive your care – at home, in an assisted living facility, nursing facility, or adult day care. This form of insurance protects your estate and shields loved ones from your extended and chronic care costs.

For many policies, benefits are triggered if one cannot complete 2 of 6 Activities of Daily Living which include: bathing, continence, dressing, eating, toileting, and transferring. Severe cognitive impairment may also trigger policy benefits.

Traditional long term care plans may have dollar for dollar Medicaid protection via the South Dakota Long Term Care Partnership Program, click here to learn more about the program.

To get an idea of current and future long term care costs in your area, click here to access Genworth’s Cost of Care Survey.

A life insurance policy with long term care coverage accelerates the death benefit when long term care is needed. This means a portion of the death benefit is paid out early in order to cover long term care costs reducing the death benefit accordingly. If you never need LTC, or only partially accelerate the death benefit, then a death benefit is available to combat the “use it or lose it” argument against traditional LTC. We have combo products available for just one insured, or we can put a couple on one plan with a second-to-die death benefit.

With an annuity and long term care combination policy, a one-time lump sum of money is utilized to fund both an annuity and long term care rider.  The initial cost of LTC is paid from the annuity accumulation value which is reduced dollar for dollar.  If the accumulation value is exhausted, the long term care rider will provide benefits up to the policy maximum.  Any withdrawal(s) from the plan that are not for qualified LTC expenses will affect how the policy pays out.  This type of policy leverages your premium dollars in the annuity while also purchasing the long term care rider which will further protect you against future LTC costs.

This policy combination is best for those who are not able to purchase a traditional or life/long term care contract due to health complications.