Wednesday, February 09, 2011

Some retirees could consider "single premium" long term care insurance

Financial planners have been telling me that a retired person can buy a “single premium” long term care that would typically pay about three times the deposited amount by the person should the person subsequently  meet the criteria for needing care (difficulties with at least two activities of daily life). So a $50000 deposit could enable one to qualify for about $15000 in benefits (less than two years in a nursing home in many cities).

There might be strict health entrance requirements and intrusive monitoring and medical exams.  For example, the Lincoln Financial Group "MoneyGuard" product does ask a lot of prior health problem questions (especially heart disease) and could up to $394000 for long term care over six years for a $100000 premium, with a small residual death benefit. Specifics are available only by quote and can depend on individual circumstances considerably.  Generally these products are available through investment departments at major banks (Wells Fargo, SunTrust, etc.) 

It’s possible to imagine future legal pressures on the childless to purchase these policies if able, especially as states wake up to filial responsibility laws. 

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