Continuous Pay With Flexible Plan Design
Generally, traditional, stand-alone long term care policies give you the biggest LTC benefit for your premium dollars and include the following features:
- Premiums can be paid annually, semi-annually, quarterly, or monthly.
- Automatic waiver of premiums when on active claim.
- Growing pool of money that provides inflation protection. There are many different inflation protection options to create a customized plan.
- Shared care and true third pools of money available for couples.
- Available cash-benefit options that add flexibility.
- Available return-of-premium (ROP) on select carriers.
- Low breakeven point. The average policy holder after paying premiums for 20 years will break even within just 4-5 months of care.
- Premium stability. Premiums are designed to remain stable for the life of the policy; however, premiums can increase on a class of insureds, with state approval. Premiums today have stabilized dramatically as carriers have priced new policies appropriately and require stricter underwriting.
- 10-pay premium option on select carriers.
- Available third-party ownership.
- Option to finance using 1035 exchange.