Long-term care can be defined as the variety of health and supportive services necessary for adults who require some form of daily, ongoing assistance outside of the acute care unit of a hospital. It can also include home health care, adult day care, assisted living, hospice care, and homemaker services. The types of care available differ widely between insurers.
According to the U.S. Department of Health and Human Services (September 2008 National Clearinghouse for Long-Term Care Information), at least 70% of people over the age of 65 will require some form of long-term care services at some point in their lives.
Types of Policies
There are two main types of policies:
- Traditional Long-Term Care Insurance - Requires paying annual premiums to offset the costs of paying for long-term care.
- Single Premium Hybrid Policy - Requires a single premium that secures both a life insurance benefit and long-term care coverage. If needed, the policy provides specified coverage for long-term care. If long-term care is not needed, you may choose to have a death benefit paid to your beneficiaries or elect a "return of premium" option, in which you would receive your original single premium back (subject to possible tax implication).
Ask your Stifel Financial Advisor today for a copy of a brochure published by the National Association of Insurance Commissioners (NAIC) titled, "A Shopper's Guide to Long-Term Care Insurance." The NAIC is a group consisting of state regulators whose primary responsibility is to protect the interests of insurance consumers. Your Financial Advisor can also provide information on policies offered through Stifel that may meet your individual needs.