Pillar 4: Long Term Care

Question 1

What is Long Term Care planning?

Answer 1

Long Term Care Planning is a financial plan to provide various avenues for funding such as a long term care insurance policy, personal savings, and government assistance programs. It provides a roadmap to ensure the quality of care through financial resources that will help to preserve your assets and maintain your accustomed lifestyle.

Question 2

What are the types of Asset protection in a Long Term Care Plan?

Answer 2

Traditional LTC:

• Medical Asset Protection protects assets the you would have to “spend down” to qualify for Medicaid benefits that continue to help pay your long term care.

Hybrid LTC & Annuities:

• Hybrid LTC plans and annuities can provide death protection that ensure assets are left behind to you heirs if long term care is ended.

Question 3

How do I qualify for a Long Term Care Plan?

Answer 3

It depends on your financial and health suitability. Underwriters will consider state net worth guidelines, liquidity considerations, your health history, family history and current prescriptions before making a decision on whether or not you qualify for coverage.

Question 4

What is the Elimination Period?

Answer 4

The Elimination Period is like the deductible on your car insurance, but instead of being measured in money it is measured in time. The policy starts to pay out after the period is over. Expenses are paid out of pocket for short term care and our advisors can help to come up with a plan to ease this burden.

Question 5

How long is the Elimination Period?

Answer 5

The standard period is 90 days. A qualifying event needs to occur once per life time and then the period will start. Once the period is over the long term care will begin.

Question 6

How can I use my LTC benefits?

Answer 6

You can use your benefits for:

• Care at home, including personal care, health aide, homemaker and chore services, nurse services and a therapist.
• Community Care (adult day care).
• Assisted Living Facility
• Nursing Facility, which may or may not include private and semi-private rooms and memory care.

Question 7

How do I implement a LTC?

Answer 7

There are 3 steps:

1. Application process (where divulge personal information)
2. Underwriting (this process takes 2-12 weeks)
3. Delivery (when you accept the contract)