LONG - TERM CARE INSURANCE

For most Americans, a traditional Life and Health Insurance package is enough to keep themselves and their families insured, but for many, additional coverage is required. At New Century Insurance Services Inc. , we offer extensive coverage options that can insure the care of those who need it most.

Long Term Care Insurance

Personal and Financial Protection for the Long Term

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Long-Term Care Insurance (LTC) helps provide for the medical expenses of extended home health care or nursing home costs beyond a specified period. In general, individuals who require Long-Term Care are those who can no longer take care of themselves and are unable to perform the basic activities of daily living without assistance.

The costs of Long-Term Care can be quite expensive, and are typically not covered under basic Health Insurance, Medicare, or Medicaid. Long-Term Care Insurance from New Century Insurance Services Inc. can protect your family’s financial future by providing valuable coverage benefits for costs associated with:

  • Home Care

  • Assisted Living

  • Adult Daycare

  • Hospice Care

  • Nursing Homes

  • Respite Care

Individuals looking to purchase Long-Term Care Insurance must meet certain conditions in order to qualify for benefits. Talk to an insurance professional with New Century Insurance Services Inc. to learn more about Long-Term Care Insurance and whether you should add it to your current policy.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

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There's a lot to like about two of the leading "Asset-based" Linked Life/LTC plans - Lincoln Financial MoneyGuard II and Nationwide Care Matters.  But which is the best plan for you?

As a quick refresher, linked life/ltc plans combine life insurance with tax-qualified long-term care insurance.  If a policyholder needs long-term care, it is paid by first accessing an accelerated death benefit and then an extension of benefit rider.

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Both plans offer features such as:

  • Return of premium

  • Guaranteed premiums and benefits

  • Tax-qualified (non-taxable) LTC benefits

  • Inflation options

 

We took a look at both products for a 65 year old female in Illinois - using both a single premium and a 10-pay plan.  We did not include inflation options.  Take a look at this comparison:

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You'll note that the single premium will give you more benefit with both carriers than paying premiums over 10 years. The reason?  Because the 10-pay puts more risk on the insurance carrier in earlier years while single premium plans use the deposit to pay for long-term care costs before the carrier pays - a form of partial self-insurance.  

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So, which plan would you choose? Here are some things to keep in mind.  First, a major difference between these plans is the reimbursement versus cash benefits.  A cash indemnity benefit will pay a benefit no matter who is providing the care - even if it is an immediate family member.  As long as care is required because of failing 2 of 6 activities of daily living (ADL's) or cognitive impairment, the full cash monthly payment is paid.  As an example, in the future you could use the money to lease a caregiving robot. Nationwide offers this cash benefit.

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On the other hand, if you live in an urban area a reimbursement plan gives you more benefit dollars to use.  There are a lot of quality home health care and assisted living communities in major urban areas - and the reimbursement plans should work well.

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Either product makes for a sound long-term care plan. For more information on Linked Benefit products,