Busting 3 Long-Term Care Insurance Myths
Here are three common objections to long-term care insurance that are answered by Bill Hunter of Transpacific Financial.
I asked Bill to contribute his knowledge because I know he's passionate about using insurance to help families care for their most important needs. He and I met a few years ago and I had never met anyone who inspired me simply by discussing why the right types of insurance are important in a society like ours.
Before we dig into what Bill wrote, here are a few important notes about this form of insurance that's often misunderstood.
Basic personal tasks may get more difficult for someone who's aging or a person who's been in a debilitating accident or has fought a serious disease. Simply put, the Department of Health and Human Services describes long-term care as "a range of services and supports you may need to meet your personal care needs. Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life."
For Further Reading
Now, to Bill Hunter.
Here are three things many of us have been told with regard to long-term care protection:
Myth 1) If you don’t use it, you lose it. Premiums invested in a long-term care policy will simply be forfeited to the carrier if one dies without ever requiring long term care services.
Fact: While this is true for many so-called “traditional” long-term care policies, there are now several alternative products available that can provide long term care coverage if it is needed and pay life insurance benefit to beneficiaries if it is not.
Myth 2) Long-term care insurance carriers can raise premiums on policies that are already in force.
Fact: Again, this is true for the conventional, “stand-alone” policies, but now there are options available that are guaranteed to deliver a predefined dollar amount of long term care benefit for a contractually agreed upon premium.
Myth 3) As is the case with health insurance, long-term care premiums must continue to be paid indefinitely or policies will simply lapse.
Fact: Policies now exist that can either be purchased outright for a lump sum or for a series of three to ten yearly payments. These policies leverage the consumer’s investment to provide up to $6.00 or $7.00 of benefit for every premium dollar paid.
For more information or clarification, contact Bill:
Office: 626-447-7888 X 1012
Visit him on LinkedIn.com, Bill Hunter, Long-term Care Specialist
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