PHS Advisors, Inc.

6331 NW 93rd Drive

Parkland, Florida 33067

www.phsadvisors.com

954-540-6609

ELDER CARE PLANNING

As long-term care insurance premiums rise and fewer companies offer policies, alternatives to traditional long-term care insurance policies are springing up.  A popular hybrid product combines life insurance or an annuity, with long-term care coverage and offers buyers solutions to a number of problems that have kept people from buying traditional long-term care policies. 

The life insurance/annuity hybrid policies are often available to individuals who would not qualify for conventional long-term care insurance due to preexisting conditions.  In addition, the long-term care benefit is not a “use it or lose it” proposition.  If the benefit is not used, or is only partially used, the unused portion is paid out to an individual’s heirs in a death benefit.  Finally, one reason people are wary of traditional long-term care insurance is fear of hefty premium increases down the road.  Extraordinary premium increases
are not a factor with the life insurance/annuity hybrid products. If you have money sitting in a CD or Money Market account making 0-2% interest, this product can be perfect for you.

Hybrid life insurance products add a long-term care “rider” to a permanent life insurance policy (whole life or universal life products, not term life).  Policyholders typically pay a lump-sum premium up front or a guaranteed set of premiums for a prescribed period of time.  If the long-term care feature is included, it allows the insured to receive a tax-free advance on her life insurance death benefit to pay for long-term care while she is still alive.  The insurance benefit kicks in when the policyholder can't perform two of the six "activities of daily living." Once a doctor certifies that the person is eligible, the insured can start to accelerate her death benefit to pay a monthly amount that covers her long-term care costs.

 Please call me at 954-540-6609 if you would like to discuss your situation.


 

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