continuing insurance after

continuing insurance after
Until recently, consumers had less choice when it comes to long term care insurance. Traditional concepts that a certain amount of coverage selected, were the norm. Policies can be designed to support the expenses for a few months or much longer also the benefits to the insured life. For example, consumers could buy coverage by the 100 U.S. dollar per day of benefits for a period of three years. For the calculation of the 100 U.S. dollar per day, multiplied by 365 days a year for 3 years $ 109,500 would be a "pool of money" for the care available. This pool of money would pay for care in a nursing home, assisted living facility, adult day care, or in the personal residence of the policyholder if certain criteria are met.

If the pool of money was exhausted, the traditional policy would no longer useful. However, if the policy has never been used, the owners would invest their premium payments. For example, some seniors are not buying this policy to decide, rather than relying on their savings or current families in the event that care is needed.

With the cost of health care rising rapidly, and one day in a nursing home costs $ 175 or more in large cities, even the insurance is a risky venture. Relying on the Family is an alternative, but not necessarily a viable one. Unfortunately, most families do not have the time, resources and the ability to round the clock care of a loved one.

The introduction of hybrid Policies

The insurance industry that the needs of the consumers were not always met with long-term care policy. While the traditional policies were satisfactory for some, many others wanted more guarantees in the event of their policy was never used. Thus, this traditional policy, a "return of premium" rider. If the policy is not over a certain period, say 10 years, then return a portion of insurance premiums to the policy owner or a member of your family. These, like all other drivers, came to an additional cost to the buyer.

In response to customer demand, and agents, insurance companies have what can best be described as hybrid or related measures. These measures combine the advantages of an annuity or life insurance agreement with a traditional long-term care contract. With the hybrid policy, the consumer has the guarantee of long-term benefits or, if no maintenance is required, the promise of insurance benefits for themselves and their beneficiaries.

Long Term Care and Life Insurance

Hybrid policy in several respects. A long-term care policy, links to a life insurance policy. With this plan, the insured a number of premium deposits in a policy. Depending on the age, sex and health of the client pool is an instant money for the long-term care. At the same time, an immediate death benefit will be in life. Take, for example, a healthy 65-year-old non-smoking woman with $ 175,000 in cash. If you deposit 50,000 U.S. Dollars to this account, about $ 87,000 in long-term care would be immediately. It would also be an advantage for the death of her beneficiaries of approximately $ 87,000 from the life insurance component of this account. For an additional cost, they can choose a benefit to the driver about $ 260,000 in long-term benefits as against the original $ 87,000. In this example, they receive guarantees for their investments as well as protection against the high costs associated with a nursing home stay. In addition, it would still leave $ 125,000 in assets at their disposal.

Another example of this combination policy links long-term benefits for the supply of a single premium deferred annuity. This product begins with a pension, either a lump sum deposit or structured deposits over time. If no treatment is required, the pension is gaining interest functioning like any other fixed annuity. But if the owner / Pensioners need care in a nursing home or elsewhere, a formula used to determine the level of performance for customers. Let's take the example used was a healthy 65-year-old woman, who at $ 150,000 in this account would have the advantages of tax-deferred, safe growth in the pension and approximately $ 4700 per month of long-term care benefits for 36 months. The additional cost, a performance driver for this policy would be $ 4700 monthly allowance for their life's work. In this type of policy, the additional advantage that the driver is usually a sensible purchase for maximum guarantees.

The Long Term Care Annuity

The newest addition to the hybrid market is the long-term care annuity. This product works exactly like a fixed annuity, but has a long-term care policy in the multiplier. There is no premium for this rider medically backed pension policy. Instead, a portion of the internal return in the contract is for payment for the long-term care benefit. Long-term care coverage is based on the amount of coverage can be selected when the policy purchased. The insurance provides a payout of 200% or 300% of the aggregate policy value over two or three years after the annuity account value is depleted. For example, a policyholder with a pension of $ 100,000, which is selected and the sum of the benefits of 300% and a benefit factor of two years would be an additional $ 200,000 for the long-term care expenses after the first 100,000 U.S. Dollar value was political decimated. The policy owner to spend U.S. $ 100,000 annuity value over a period of two years and then the additional $ 200,000 over a period of four years or longer. In this example, the contract pays $ 50,000 a year for a minimum of six years, but takes longer when less power is needed. Although long-term care is not necessary, the pension will be paid a lump sum value of all the names recipients.

These scenarios are only the most important examples of how hybrid strategies are working. That is, the cover is from person to person depending on age, health, sex, bonuses and benefits. To get a detailed proposal, an example would be the insurance company. These innovative products are the desires of consumers and greater guarantees by the combination of traditional insurance with the advantages of life insurance or annuities. So, consumers, the hybrid policy can use to self-insurance against the catastrophic long-term care related costs and the peace of mind in conjunction with a comprehensive plan.

Hyeres clock has been in the insurance and investment industry for almost ten years. He owns and operates Ohio Insurance, an independent insurance agency doing business in Ohio, Missouri and Georgia.

His agency offers products for individuals, families and any size employee group. They use the leading national insurance carriers to offer deals, illustrations and relevant information on life, health, and HSA accounts. They also offer disability and long-term care insurance and annuities, Medicare supplement and Medicare Part D coverage.

Visit them at:

http://www.ohioinsureplan.com