How to Navigate Long Term Care Planning—Even With Health Issues
Long Term Care
There are options for those who don’t qualify for traditional long term care insurance.
While traditional LTC insurance can ensure you’re covered for future care expenses, not everyone will qualify. The good news is that even those with health issues have options.
Long Term Care Insurance Provides Options
There are many ways to pay for care when you need it and where you’d like to receive it.
Traditional LTC Insurance
You may be surprised to learn that prior health challenges like cancer or a stroke don’t automatically exclude you from traditional LTC insurance—if you have recovered. If you’ve had cancer, you may be able to secure LTC insurance depending on your type and stage of cancer, particularly if you have remained cancer-free for a period of time. You may likewise qualify for coverage after a stroke if two years have passed and you don’t have other medical conditions.1
If you have a health condition, it’s important to have an experienced Advisor assess your eligibility before you apply since a declination by one LTC provider can make it difficult to be approved by others.
Group LTC Insurance
If your employer offers LTC insurance as a voluntary benefit, you can secure coverage, regardless of your heath history. Even if you leave your job, you may have the opportunity to take your coverage with you, though it may be very expensive to do so.
LTC Annuities
An LTC Annuity is a good option if you have Parkinsons, multiple sclerosis, lupus, or another condition that might preclude you from qualifying for traditional LTC insurance. Conditions like these also make it likely you’ll need care over a long horizon.
These plans typically double or triple your annuity investment in the form of LTC benefits. Typically you’ll need a minimum of $50,000 to invest. If LTC is never needed, the accumulated value of the annuity can be redeemed to fund LTC expenses.
LTC Annuities generally require less underwriting than traditional LTC or hybrid life insurance policies. You can qualify for most plans as long as you don’t need help with activities of daily living (ADLs). Some polices are specifically designed for those who already need or are receiving care.
Short Term Care Insurance
Like LTC insurance, Short Term Care (STC) insurance can help cover costs for services when you’re unable to perform ADLs on your own. STC insurance typically covers services that last 12 months or less and is ideal for those at older ages, those with health challenges, and those with coverage gaps.
STC insurance typically provides $100 – $200 a day to help offset costs for care in a nursing home or assisted living facility, home care services (including cash benefits to pay informal caregivers), and adult day care. STC polices pay in addition to Medicare.
STC applications require answers to just a few questions and do not require a medical exam. Most companies offer STC coverage up to age 89. Unlike LTC policies, there is no waiting period.
Don’t let a health condition derail your LTC planning. Our Advisors can help you determine which options provide the best value, given your health, assets, and plans for future care.
1 American Association for Long Term Care Insurance, accessed December 2023.
