In the well-known premium increases of long-term care insurance, from insurance companies after leaving a number of key markets, many consumers are skittish to buy discs coverage. But the need to protect not disappear. The average cost of a year to break through $ 77,000 in 2011 in a private room in a nursing home, according to a recent survey by Genworth, and the cost at a rate of about 5% per year increase. Round four hours on-site service is run.
If you do not want to buy – or do not meet – an independent long-term care insurance, there are three other ways to protect your retirement savings potentially devastating costs of long-term care from. If you do not use long-term care benefits, insurance death benefit or toward cloud security uity.
life insurance policies in combination. Several companies have launched a new life insurance policy combined with long-term care and protection. You invest a sum or pay premiums for a limited time, and you’re guaranteed to get any long-term care expenses or death benefits. For example, if a 55-year-old man in Lincoln Financial MoneyGuard Reserve policy plus investment $ 10,000 per year ten years, he must pay $ 320,000 to the pool of long-term care benefits can be paid as a monthly $ 6,669 for up to four years. If he does not use long-term care unit died, his heirs will receive about half – $ one hundred and sixty thousand and fifty-seven – as a death benefit. Or, if he uses some of the money for care, death compensation will have been used to reduce the amount of PA y represent his care.
These policies may be appropriate for people in their fifties and sixties who still need life insurance, but who also want to protect the long-term care costs. Pay all at once from price increases shield, your premiums; some of the policies, you have to pay more than ten years to ensure that premiums will not rise. When long-term care, you need to have at least two activities of daily living, such as bathing, dressing helps benefit is triggered, or you cognitive impairment. You can receive care at home, assisted living facility or nursing home in.
Annuity / long term care policies. Some companies, such as Omaha and mutual assistance, provide deferred annuity and long-term care policy mix, allowing you to take full advantage of your investment in three to one. For example, a $ 100,000 annuity mayLong-term care allowance is paid up to $ 300,000. These policies are who already have a deferred annuity, people want to share what combination of tax-free annuity policy attractive. It may be easier to qualify for than traditional long-term care policy, and one of these combinations policies.
If you use the money to long-term care expenses, distributions are tax-free. Withdraw for other reasons, however, the income of ordinary income tax you will pay. The unused portion of the annuity (minus any long-term care payment) can be left to the successor.
Longevity insurance. This type of annuity paid only when you reach a certain age – usually 85. This is to make sure you do not outlive your savings and possible ways to protect against the cost of long-term care, tend to occur in the elderly. Suppose you live in New York to ensure that future income annuity investment of $ 100,000 in 65 years, starting at age 85, you will receive an annual expenditure of $ 67,000 for the rest of your life. You can use the money for any purpose, including long-term care.
Anyone can buy longevity insurance regardless of their health status, so it can not conform to whom a separate long-term care insurance person. The downside is that if you are 85 years of age
Die first, you will not get anything