Asset Based Long Term Care Insurance
Every senior retiree needs insurance to protect them from the high costs of nursing homes and long term care health care costs.
As of today it does not look like the federal government will be passing any sweeping health care reform.
The private option is the only current option.
Most people have never heard of "Asset based Long term Care.
" Let me give you a brief description.
Most retirees buy traditional insurance, they may have monthly or annual premium payment and in return for their premium payment they receive some insurance benefits.
Comprehensive long term care insurance pays a daily benefit, it could be $50.
00 a day, it could be $200.
00 per day, the more you pay the higher the daily benefit.
You could have unlimited daily benefit coverage but you will pay very high premiums.
You then have a policy benefit maximum, it could be 1 year, 2 years 5 years or lifetime coverage.
Again, you choose and the higher the policy benefit maximums the higher the costs.
Your policy could cover just Nursing homes, or it could cover assisted living or Home health care, again you decide, the cost is based on how comprehensive you want your plan to be.
Now with all insurance it depends if you ever have to use it.
If you don't use it you must still continue to pay your premium each and every year.
Just like your home owners insurance, automobile and life insurance.
You pay every year again and again regardless.
So what is asset based Long Term Care? This is an insurance policy that only requires a one time deposit and based on how much you deposit you would pick up all of the nursing benefits discussed in this article.
The real benefit and difference is that you make no annual or monthly premium payments.
The could be a very attractive alternative because if you don't use the nursing home benefit it carriers a death benefit to your heirs which is a tax free death benefit which is higher than your original deposit, based on your age at issue, it could be twice as much as your one time deposit.
So if you don't use it, you don't lose the money you paid as a one time deposit.
The other really nice benefit, if you ever need your deposit back, the insurance company will refund your deposit 100%, if the government would ever overhauls the health care system in the future and we don't need private pay insurance anymore you could get your money back.
These policies carry a "money back guarantee.
" This concept of asset based long term care insurance may be an idea whose time has come.
As of today it does not look like the federal government will be passing any sweeping health care reform.
The private option is the only current option.
Most people have never heard of "Asset based Long term Care.
" Let me give you a brief description.
Most retirees buy traditional insurance, they may have monthly or annual premium payment and in return for their premium payment they receive some insurance benefits.
Comprehensive long term care insurance pays a daily benefit, it could be $50.
00 a day, it could be $200.
00 per day, the more you pay the higher the daily benefit.
You could have unlimited daily benefit coverage but you will pay very high premiums.
You then have a policy benefit maximum, it could be 1 year, 2 years 5 years or lifetime coverage.
Again, you choose and the higher the policy benefit maximums the higher the costs.
Your policy could cover just Nursing homes, or it could cover assisted living or Home health care, again you decide, the cost is based on how comprehensive you want your plan to be.
Now with all insurance it depends if you ever have to use it.
If you don't use it you must still continue to pay your premium each and every year.
Just like your home owners insurance, automobile and life insurance.
You pay every year again and again regardless.
So what is asset based Long Term Care? This is an insurance policy that only requires a one time deposit and based on how much you deposit you would pick up all of the nursing benefits discussed in this article.
The real benefit and difference is that you make no annual or monthly premium payments.
The could be a very attractive alternative because if you don't use the nursing home benefit it carriers a death benefit to your heirs which is a tax free death benefit which is higher than your original deposit, based on your age at issue, it could be twice as much as your one time deposit.
So if you don't use it, you don't lose the money you paid as a one time deposit.
The other really nice benefit, if you ever need your deposit back, the insurance company will refund your deposit 100%, if the government would ever overhauls the health care system in the future and we don't need private pay insurance anymore you could get your money back.
These policies carry a "money back guarantee.
" This concept of asset based long term care insurance may be an idea whose time has come.
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