The single greatest financial risk we all face may be the cost of care. Today’s policies allow you to leverage your premium to purchase large LTC benefits, BUT also have cash value, death benefits or return of premium if you don’t need the LTC benefit. It is no longer “use it or lose it”. There is a guaranteed payment on the policy!

How will you pay for long term care? There are 4 options. 

1. Pay for long term care out of pocket (or self insure). This could result in a tremendous financial burden for both you and your family. This could result in a tremendous financial burden for both you and your family, as costs could easily exceed $500,000 for a medium length stay in a facility. And don’t forget, Medicare does not cover these costs. 

2. Rely on friends or family to provide care. Think very carefully about this option, and plan well ahead of time is this the direction you choose. 

3. Pay for long term care insurance out of pocket. While not inexpensive, today’s policies allow for either a death benefit or return of premium option if unused for long term care benefits. Many of the largest and most respected life insurance companies are offering these policies. 

4. Utilize existing assets to cover the cost of long term care insurance. Use the value of an existing life insurance policy or 401 (k) to fund new policy. 

Don’t overlook the ways that you can eliminate or reduce the risk of financial devastation due to a long term chronic or critical illness.