Long Term Care insurance (LTCi ) has been very confusing to most people. A recent headline on CNBC stated the “premiums are expensive” and at first glance you might say, I agree. But as in all things it is always best to ask “Compared to what?”
Phyllis Shelton wrote an article in a recent trade publication and pointed out “Long-term care insurance premiums are a drop in the bucket compared to the cost of the type of care this valuable insurance pays for.”
Shelton is the president of LTC Consultants, Nashville, Tenn., a 21-year-old consulting company that specializes in long-term care insurance consumer education and agent training.
If you want to read her article you can find it at-
The LTCi market is certainly going through some changes. Carriers are dropping out of the market and product features have changed, even in the past few months. As you consider how LTCi fits into a retirement plan it is best to get all of the facts before you make a final decision.
For example, many people think of “nursing home” when they hear Long Term Care , but actually we know statistically that 79% of new LTC claims are for home health care. We also know most people would prefer to receive care in their home as long as possible.
In addition to traditional stand-alone long-term care policies, there are now asset based LTC products and solutions linking LTC riders to life insurance and annuities. Each of these products addresses a different client need and/or obstacle. Make sure you understand what protection the products offer.