Posted by Amy Carbone on Jul 24, 2024 11:00:00 AM
You may know Bing Crosby from the song “White Christmas,” a Christmas classic, or any number of movies and albums this iconic crooner created over the course of his prolific fifty-year career. Perhaps your parents or grandparents were fans of his smooth voice, or you are.
In any event, Crosby was not only memorable in life, but he also passed away in a (sadly) remarkable way. On October 14, 1977, having just finished 18 holes on a beautiful golf course, in Madrid, Spain, he announced to his foursome, “That was a great game of golf, fellas. Let’s go have a Coca-Cola.” Immediately after uttering those words, he dropped dead of a massive heart attack. Attempts to resuscitate him failed.
Few of us will be so lucky to spend the last moments of our life in such a way.
Since the AARP reports that 77% of the elderly population wishes to age in place, the number of elderly homeowners who will require a caregiver or other home care services is expected to rise. With this in mind, considering a hybrid long term care life insurance policy may be a suitable strategy for your future.
The Importance of Hybrid Long Term Care Insurance
The Cost of Long Term Care Is Increasing
The cost of long term care in this country is high and getting higher.
This reality presents financial challenges to today’s dental and medical professionals and their families. Do you have sufficient assets to cover the potential cost of care? If not, how is this risk best addressed? Is it prudent to pay dollar for dollar the cost of that care?
Finding Hybrid Long Term Care Insurance Now Can Transfer the Risk
Transferring the risk of footing these kinds of bills via some form of insurance may address concerns for some.
Though product features and benefits have changed over the years, traditional long-term care policies are still available. The market has also created viable alternatives using a permanent life insurance platform.
Essentially, what these products do is offer a blend of long-term care and life insurance features, offering long term care protection as well as death benefits, as a life insurance policy would. Within the hybrid life and long-term care insurance model, there are many options, but many share similar advantages.
4 Advantages of Hybrid Long Term Care Insurance
Here are some of the top advantages of the hybrid long term care solutions on the insurance market today:
1: Premium Flexibility & Consistency
Unlike traditional long term care insurance policies where premiums are not guaranteed, most hybrid policies have stable premium structures so clients shouldn’t see drastic increases in the future.
Additionally, clients may have the ability to limit the premium paying period. For example, a 55-year-old may choose a 10-year premium option and pay up the policy during their working years.
2: Less Strenuous Underwriting
Since traditional long term care policies cover morbidity-based risks, there are potentially more underwriting hurdles. In the newer hybrid environment, qualifying for a policy may be a bit easier than it used to be.
3: No Longer Restricted to “Use It or Lose It”
With conventional long term care policies, in many instances, if the benefit isn’t used, there is no residual value. Hybrid life insurance policies don’t have this problem.
These policies build a cash value. If you decide you no longer want or need the policy, you can cancel for the surrender value. Of course, if you need care, benefits are available to help offset the cost. (How much is available depends on policy design.)
Lastly, if you pass away without needing care, there is a death benefit paid to your heirs.
4: Risk Mitigation for All Tiers of Income
Many dentists and medical professionals may have a large enough estate to cover an average long term care event. Nonetheless, transferring some of this risk may still be wise.
A Little Planning Goes a Long Way.
Thinking about our own morbidity and mortality is unpleasant. Few of us escape the former and none of us escape the latter. Not planning for these realities can make these scenarios even more unpleasant, especially for those closest to us.
Fortunately, a little planning goes a long way, and the effort may turn out to be one of the greatest financial gifts you can provide to your family.
About Treloar & Heisel
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.
Insurance products offered through Treloar & Heisel, LLC.
