For most Americans there are just three funding options for long-term care.
- You could self-fund using income, savings, liquidate investments or perhaps do a reverse mortgage. (We like reverse mortgages but for other financial strategies.) Basically, we just don’t like self-funding as an option. It’s expensive!
- You could transfer the risk of the expense to an insurance company. This is our favorite option! Why pay dollars when you can pay pennies? (Yes. We are a bit biased.)
- You could qualify for government assistance through Medicaid. We really don’t like this option. Depending on assets and income, it could be quite expensive. And care venues could be limited depending on your state’s Medicaid program.
Pennies for dollars
Keep in mind that the risk of needing long-term care is high. And it’s expensive.
If you like the idea of paying pennies in premiums for dollars in benefits, insurance will be your funding solution.
There are basically three long-term care insurance products in the market today: standalone, life insurance based and annuity based. Each is priced and underwritten differently.
All can be customized to meet your desired expense offset and/or your premium budget. Find out more about each product design here. Which is most attractive to you?