Government statistics say that 70% of all people 65 or older will live long enough to require some form of home healthcare or long-term needs. But long-term care coverage remains extremely difficult to get. It’s expensive and premiums increase consistently.
Many people who spent years paying their premiums drop their coverage in frustration over continuous rate hikes.
And many people who want or need long-term care coverage cannot get it because of the stringent underwriting insurance companies use.
It seems to be a no-win until recently.
Today there are hybrid insurance products that include long-term care and home healthcare coverage, some with absolutely no medical questions and no cost-free.
How is this possible?
Well, there are two products specialize in this.
First are annuities.
Many annuities today feature impairment doublers or triplers for long-term care or home healthcare coverage. This means they pay out 2 to 3 times as much if a client needs this coverage.
The cost is usually built into the annuity and here’s the great news: most annuities have no medical questionnaire so people who’ve been with severe conditions can obtain this coverage.
It’s hard to believe but it’s true.
The most popular of these new hybrid products is a single premium indexed universal life policy written by several companies that feature:
- Easy quick underwriting/no physical
- Indexed for market upside/no downside
- No caps or limits on growth
- Tax-free death benefit guaranteed to age 121
- Long-term care and home healthcare included at no charge
- Full liquidity-no surrender penalties. This is called return of premium.
These are so popular they are mostly sold by the bank channels—big banks—as an alternative to CDs or money markets.
For more info:
Phil Wasserman, The Official Annuity Expert for MoneyShow and Annuity Expert & Tax-free Wealth Transfer Strategist, American Tax & Annuity Advisors