Insurance and LTC 101 - do I need life or LTC insurance when I retire?
Self Insurance for LTC? I hope I die before I need care or become a burden, but what are my realistic options? Is life insurance a good way to pass wealth to my kids, church or charity?
Nobody ever said: "I want to die in a nursing home!"
"I'll call Dr. Kevorkian" was the most common response in the 90's when a man was asked about what his plan was for long-term care - no man ever envisions himself in a nursing home. Women were more realistic - they knew they were much more likely to end up needing some sort of care before they passed away. The reality is about 70% of people will need some sort of long term care (LTC) before they die. If you have the assets to pay for that care or don't have heirs you are interested in leaving an inheritance to, there is no need to investigate the pros and cons of a modern LTC policy. If however, you are concerned about using a large chunk of your nest egg in your final years, it pays to explore your options to transfer that risk (the essence of insurance). New policies offer hybrid solutions combining a pool of $ for LTC and, if that pool is not used, it converts to a life insurance death benefit. More affluent consumers who desire to pass a specific dollar amount to their beneficiaries also use advanced, wealth transfer life insurance to take advantage of the tax benefits and leverage that life insurance provides.
https://www.ltcnews.com/long-term-care-insurance/hybrid-long-term-care-insurance
https://www.comparelongtermcare.org/hybrid-long-term-care-insurance-policies/
https://www.nerdwallet.com/article/insurance/hybrid-long-term-care-insurance
