Long Term Care Insurance Products Flashcards
What are immediate needs care plans?
Immediate needs care plans are structured as impaired life annuities that provide benefits for those needing immediate or near-future care, based on life expectancy and medical condition.
What are deferred care plans?
Deferred care plans start paying out after a set period, usually five years, bridging the gap between immediate needs annuities and pre-funded long-term care insurance. They require self-funding during the deferred period but reduce the risk of running out of cash.
What are pre-funded insurance policies?
Pre-funded insurance policies are risk-based products designed to pay a regular income when continuous care is required. They can be funded through regular or single premiums and typically have no investment content.
What are long-term care bonds?
Long-term care bonds are lump-sum investments designed to cover expected LTC costs, offering long-term growth potential, surrender values, and death benefits, along with LTC cover. These bonds are rare in the current market.
What are the main benefits of immediate needs care plans?
Immediate needs care plans provide immediate or near-future benefits for those requiring long-term care, often structured as impaired life annuities based on life expectancy and medical condition.
Why are long-term care bonds rare in the current market?
Long-term care bonds are rare due to their complexity and the limited demand for such products, despite offering long-term growth potential, surrender values, and death benefits along with LTC cover.
