Husband 49 and Wife 50 – set up a traditional plan which provides each of them with a starting monthly benefit of $6,000 a month and a 4 year minimum payout. The annual premium is $3,779.25 and is with a company who has never raised premiums on their clients. This plan has a 3% inflation rider which means their monthly benefit will grow each year along with their total bucket of money. Other features include a restoration of benefits which means if one of them go on claim and then become well again, the policy will reset to the original terms so they will have full coverage again. This is beneficial for younger couples and adds an extra layer of protection from an event such as an auto accident or a bout with cancer as it can provide protection and then reset to provide maximum coverage later in life. It also has a joint waiver of premium which means if one person is on claim; the premium will be waived for both. Because this is a State Partnership Program, the clients have an extra level of protection for their estate from Medicaid spend-down rules. Meaning for every dollar the insurance company pays on their behalf, they can protect an additional dollar of assets should they need care from Medicaid after they have exhausted the benefits in their policy. Traditional plans still play an important role in long-term care insurance and can be one of the least expensive ways to get meaningful coverage. This plan is with a top rated company who has never raised premiums on existing clients and their coverage will grow to over $700,000 each by the time they are in their 80’s..
Many Life Insurance policies and even Annuity Policies, have what are called Long-Term Care Riders. They also have other names for these riders, such as: