Long Term Care Insurance is Back in Style!

40 years ago or so, Long Term Care insurance (LTC) came into being and became quite popular. Unfortunately after about 20 years, many carriers got out of the business after sustaining heavy losses and became unaffordable for most of us.

Fortunately, those who stayed in the business did figure it out and there has been a rebirth with many new options and providers available. These 3 types are available now from well-known national brands:

· Traditional LTC is still here with better rates

· Life Policies with a Long Term care Rider

· Hybrid LTC-Life.

Currently, Traditional LTC is the most affordable and flexible

Life Insurance with an LTC rider is simpler to get, but because you get a death benefit, its more expensive and the riders aren't very flexible

Hybrid LTC, like life is simpler and centered around the LTC aspect, has a cash account and death benefit. The death benefit is accessed at the time you need to make a claim. Should you pass away before the death is exhausted, your beneficiaries will get the remainder plus whatever is in the cash account.

I know of one carrier that provides Lifetime Long Term Care benefits using the Hybrid method.

With Long Term Care costs exploding faster than the current inflation rate, its important to get an understanding. (Inflation protection is an option on all that I’m aware of.) Especially if you’re in your 50s & 60s, it should be a major component of your retirement planning.