Stand Alone LTC policies are still a viable solution. The key is to educate clients on what to expect. Premiums will continue to go up. Talk about cost sharing the responsibility. Policies do not need to be structured to cover every aspect of care. There is great flexibility in plan design for this solution and it is still the only solution prepped to support multi life ltc in the employer sponsored space. What drive the premium up are long durations and expensive inflation options. Why start your ltc planning discussion with a $10,000 annual premium? Why not start with something that is meaningful yet within the client’s budget? Remember our earlier suggestions on identifying sources of premium?
Cost of care is expensive…much more expensive than paying for it out of pocket. A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. We can find some helpful ways to cover the cost of a long term care insurance policy. Unspent household income, HSA’s, RMD, Savings, Cash in low interest bearing accounts. These premiums may also be tax deductible and/or tax credits may apply.
Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.