WHY LONG TERM CARE NOW - YOU NEED TO HAVE A PLAN
By: William H. Herrmann, Jr. CLU

Long Term Care Coverage is actually an estate-planning tool as a way to protect your assets.

You insure your health, life, home and automobile, then why not your assets? It becomes a part of the estate planning process.

The one very important thing you need to know about long-term care insurance protection is that you must qualify based on your health.

A change in your health due to your next doctor's visit or an accident could prevent your purchase of this coverage.

Without this coverage the choices you will face when you need care is to either pay for it yourself or rely on family friends or charity.  After age 65, Medicare and Medicaid may play a role.

A traditional long-term care policy is similar to your homeowner's policy.  Premiums are paid and if there are no claims, then there will be no premium refund.  In addition, premiums can increase.

However, there is an alternative to the traditional long term care policy.

Depending upon your state of residence, a single premium universal life insurance policy that offers long term care reimbursement benefits for covered expenses might be available.

You could self-insure, but using your own dollars may not be the most efficient option.  By repositioning a small portion of your cash reserves to fund a single premium policy may be a better way to fund the long-term care risk.

In the event that you need long-term care, the universal life policy accelerates the specified amount of death benefit, income tax free, to reimburse qualified long-term costs.

These policies also have an added feature, which is a return of premium.

Coverage of this type may help your family from worrying if they'll be care managers or caregivers and having to decide to either pay for your care or retain the inheritance.

Remember you need to implement a plan while you are still healthy.

If you have any questions, please feel free to contact William H. Herrmann, Jr. CLU at 215-947-5817.  His address is P. O. Box 6, Bryn Athyn, PA  19009.