Life insurance is a well accepted common financial planning tool that is widely accepted and almost everyone will own life insurance at some point in their life. However, Long Term Care Insurance is only owned by about one out of ten (10%) of the US population. Why is this the case?
Long term care insurance is an important insurance in your retirement years and can be used to pay for your nursing home or home health care costs. The cost of receiving long term care care is high, currently averaging over $85,000 nationwide with cost in the North Eastern US averaging over $100,000 per year.
If a person does not have long term care insurance and ends up needing care, they can easily spend through a lifetime of savings and end up on Welfare (Medicaid). Purchasing a long term care insurance product from a reputable company enables you to remain at home and maintain your independence, protect your Nest-Egg from the high cost of receiving care, and you will not burden your family.
Why is it only 10% of the population has Long Term Care?
Top Three reasons:
- 70% of our populations does not have any savings! I recent study found that 7 out of 10 people in the United States only have a $1,000 in savings. If a person does not have any savings to begin with it will be easy to qualify for Medicaid to pay the nursing home bill.
- The clients who do have assets to protect tell us they are worried that they will pay premiums and never need long term care, thus losing all that money paid in?
- Rates can be increased on traditional Long Term Care Insurance plans?
Several large life insurance companies about ten years ago began listening to the consumers’ concern and developed a new kind of product that combines life insurance and long term care insurance that is known today as Hybrid Long Term Care Insurance.
Lincoln National Life created a product called the Lincoln MoneyGuard II which is one of the top three selling hybrid long term care insurance plans.
How Does Lincoln MoneyGuard II Work?
The Lincoln MoneyGuard II provides long term care insurance benefits if care is needed, a tax-free life insurance death benefits for your family if you do not need long term care care; and will give you the majority of your money put in back if you ever change your mind. These benefits are guaranteed and fixed for the life of the contract. The contract can be funded FIVE different ways:
- Lump-sum single pay premium.
- Three year pay.
- Five year pay.
- Seven year pay.
- Ten Year pay.
In summary the shorter the funding duration the more benefits they will give you.
For example a 55 year old married female funds her policy with $100,000 into Lincoln MoneyGuard II. From day one her $100,000 will immediately guarantee her $418,131 in tax-free long term care insurance benefits and she can access that pool of money at a $5,387 per month rate. Going forward, both numbers will grow 3% compound each year to keep pace with rising health care inflation.
The best part is if care is never needed then her family will get a tax-free life insurance death benefit of $129,284.
Also included is the ability to get most of your money back if you change your mind. In the above example she could walk away with $80,000 if she decided to cancel the contract.
I like it, but is the Lincoln MoneyGuard II Hybrid Long Term Care Life Insurance Right For Me?
The Hybrid Long Term Care Insurance product Lincoln MoneyGuard II can make sense for many individuals who are concerned about needing long term care at some point before they die, but at the same time have a feeling they may never need care. Lincoln MoneyGuard II is right for people who are seeking to protect their retirement assets from the high cost of receiving long term care, and have the funds and are able to re-allocate an asset that will not be needed for retirement income.
How do I qualify for Lincoln MoneyGuard II?
Qualifying health-wise for Hybrid Long Term Care Insurance products like the Lincoln MoneyGuard II is easier than qualifying for a traditional long-term care insurance policy. The reason is they have a bigger chunk of money upfront so are able to insure slightly higher risk. The underwriting process with Lincoln MoneyGuard II most often only consists of a telephone interview although they may pull medical records if the underwriter requests the additional information.
Even if your prior traditional long term care insurance application has been turned down, you might still qualify for a Hybrid Long Term Care Insurance product. At HybridLongTermPlans.com we work with all the hybrid companies including Lincoln MoneyGuard II, so if you would like to compare all of the Hybrid Long Term Care Insurance products simply fill out the form below and we’ll FedEx you the top ten Hybrid Long Term Care Insurance plans.