Long Term Care Coverage is Financial Freedom for Women

Retired women typically need long-term care services for 1.5 years longer than men, according to the U.S. Dept. of Health and Human Services. Since the cost for one and a half years of care could add up to $100,000 and more, a retirement plan that includes a strategy to pay for long term care expenses is crucial for women.

Traditional Long Term Care Insurance vs. Hybrid Long Term Care Insurance

There are several options for obtaining long term care coverage. Traditional long term care insurance – where you lose the premiums if not used – is not the only option available these days.

One option is a hybrid whole life insurance policy combined with long term care expense protection. The advantage of a hybrid policy is that if you never need long term care, you will not lose your premiums as you would with traditional LTC insurance. Instead, when you pass away, the premiums you pay to the policy are distributed to your beneficiary via a death benefit. The premium dollars you paid will determine the amount of death benefit. As with a traditional long term care policy, hybrid policies are medically underwritten, meaning your age and health status would determine the amount of premium you pay for your coverage.

“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.”

~Suze Orman

One of the big “what-ifs” of life is the need for long term care in your frailty years. True financial freedom means you have a plan in place for how to pay for it. I call that sleep-at-night insurance. Once you implement a strategy to cover long term care costs in retirement, you’ll sleep peacefully knowing you have taken care of your future self.

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