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Exploring Alternatives to LTC Plans

Long-Term Care (LTC) insurance is designed to help cover the cost of services such as home care, assisted living, and nursing home care. However, traditional LTC insurance isn’t always the right fit for everyone. Whether it’s due to affordability, underwriting requirements, or changing needs, many people are looking for alternatives to LTC plans to prepare for future care costs.

Here’s a look at some viable alternatives to traditional LTC insurance agents can suggest to clients as an affordable option.

Hybrid Life Insurance with LTC Riders

What it is: A life insurance policy (usually whole or universal life) that includes a rider allowing policyholders to use part of the death benefit to pay for long-term care expenses.

Pros:

• If the policy holder never needs care, beneficiaries still receive the death benefit.
• Premiums are often guaranteed and cannot increase.
• Easier to qualify for than standalone LTC insurance.

This is a good choice for Individuals who want both life insurance and LTC protection in one plan and are concerned about “use-it-or-lose-it” LTC premiums.

Annuities with Long-Term Care Benefits

What it is: Some annuities offer enhanced payouts if the owner needs long-term care, effectively doubling or tripling the monthly income benefit for a specific period of time.

Pros:

• Guaranteed income stream.
• Fewer underwriting requirements.
• Can use qualified or non-qualified funds.

These annuities are an option for people with savings they want to protect or grow, who worry about future care expenses but don’t want traditional insurance.

Watch a quick video on Annuity basics

Short-Term Care Insurance

What it is: Short-term care policies cover care needs for a limited time; typically not more than 360 days. They are easier to qualify for and are more affordable when compared to traditional LTC policies.

Pros:

• Lower cost.
• Often no medical exam required.
• Quick benefit payout.

Clients who may not qualify for traditional LTC insurance or those seeking a more budget-friendly option to cover a temporary care gap should consider short-term insurance coverage.

Self-Funding with Investments

What it is: Creating a personal plan to save and invest funds specifically designated for possible long-term care expenses.

Pros:

• Complete control over assets.
• No underwriting or monthly premiums.

Cons:

• Requires discipline and adequate income.
• May be insufficient if care is needed sooner than expected or costs exceed projections.

Best for: High-net-worth individuals or financially savvy clients who prefer autonomy over their funds.

Medicaid Planning

What it is: Strategic financial planning to qualify for Medicaid coverage of long-term care. This might include asset protection strategies such as irrevocable trusts and gifting.

Pros:

• Medicaid is the largest payer of long-term care in the U.S.
• Can help preserve some assets for heirs.

Cons:

• Requires strict adherence to look-back periods and asset limits.
• Planning must be done well in advance.

This may be an option for those with limited assets or those with time to plan ahead using an experienced elder law attorney or Medicaid planner.

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Start the Conversation Early

The key to successful long-term care planning is starting early. Many of these alternatives become less viable with age or declining health. For agents, it’s important to offer a well-rounded view of options so clients can make informed decisions based on personal needs, health, and finances.

Remember: LTC planning isn’t one-size-fits-all. By exploring these alternatives, clients can have peace of mind; even if traditional long-term care insurance isn’t a viable option.

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Agent looking to expand your portfolio with LTC alternatives should consider contracting with carriers that offer hybrid products. It also helps to work with financial planners to create a comprehensive care funding strategy for your clients.

Because Medicare agents have a large number of products to choose from when deciding what to sell, we explain why offer Physicians Mutual dental plans in the post below.

Dental products provide necessary coverage not offered by original Medicare. Because poor dental health can lead to serious health issues, regular dental checkups can help avoid health problems down the road.

There are 4 different dental plan options

Each plan provides coverage for over 400 procedures. The difference between the plans is the premium and the amount the plan pays for each covered service. There are plan choices to fit any budget.

All plans provide 100% coverage for preventive treatment at an in-network dentist. This includes; an exam, x-rays and a cleaning.

Take a look at the CT dental Brochure

Please note; There is a 12 month waiting period on major benefits.

All plans use the Ameritas network of providers. There are more than 5000,000 provider locations for member to access. All these plans are PPOs so members can receive out of network coverage for services, but it is always better to use in network providers for the best value.

Economy

As you have probably guessed; these plans are the lowest cost plans.

The Economy plans pay 25% of the maximum allowable charge for Basic treatments (fillings) and Major benefits, such as root canals or crowns.

Standard

Standard plans are another affordable option for dental coverage. They provide a payment of 40% of the maximum allowable charge for basic and major treatments.

Preferred

Preferred plans are similar to the other plans. The plan cost is a little more and so is the coverage percentage members receive. These plans provide 55% payment of the maximum allowable charges for basic and major benefits.

Premier

The Premier plans are the highest coverage level available at Physicans Mutual. This plan pays 70% of the maximum allowable charge for covered services..

Click here for product availability Map

A few more reasons to offer Physicians Mutual Dental Plans

These plans do not require members to pay a deductible. All preventative benefits are covered at 100% from day 1. One important aspect of this plan is; there is no maximum on cash benefits like other plans. That makes these plans a fantastic value no matter which plan beneficiaries choose.

Watch a video on the Physicians Mutual Dental plans

It is easy for members to add a vision and hearing rider to any plan. Once added members can use any participating provider.

See why you should offer ancillary products to your clients

Eye exams are covered up to $100 per year per member. The vision correction benefit of $150 includes prescription eyeglasses, sunglasses, sports glasses and contact lenses. There is a 3 month waiting period for this benefit. Members use the VSP network of providers to receive a discounted price for eye exams and lenses.

The hearing benefit provides up to $75 per member for covered hearing exams and as much as $500 per hearing aid per ear after a 12 month waiting period.

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