When to Use Alternatives to Long Term Care Insurance Coverage

According to a survey conducted by Genworth, around 15% of people who don't have long-term care insurance or don't plan to purchase one have an back-up plan. Those 70% of Americans who are 65 and above and will require long term care at some point of their lives have myriad of options to choose from.

Here are some alternatives you can choose from:

1. Annuities with long term care riders
2. Hybrid life insurance plans with long term care riders
3. Single premium whole life insurance policies

Click the link to read the full article on "When to Opt for Alternatives to Traditional Long Term Care Insurance."

Paying for Long Term Care through Annuities

Annuity is actually considered as a sound retirement plan if you prefer to receive a steady flow of income in the latter part of your life. Since long term care is becoming a pressing need for older adults, this can be used to pay for your long term care expenses.

There are different types of annuities that you can use to pay for care and they are Immediate Annuity and Deferred Long Term Care Annuity.

Immediate annuity works this way, the insurance company converts your single premium payment to a certain amount of money every month for a period of time or for the rest of your life. The money you will receive is based on your age, gender and initial premium.

Long term care annuity is usually offered to people who are below 85 years old. This type of annuity gives a stream of monthly income for a specific period of time. You are entitled to two funds. You can use the first one to pay for your long-term care expenses while you can use the other fund for your other expenses. You can access your long term care fund right away but you need to wait for a specific day before you can receive the other fund.

Original Source: http://annuitynews.net/2014/09/03/red-zone-multitasking-long-term-care-annuities/