Some people in New Jersey may have given thought to how they will afford the care they may need as they age, and thus have a long-term care insurance policy as part of their estate plan. However, such policies can be expensive, as premiums are constantly increasing. Therefore, it might be worthwhile to consider other alternatives to long-term care insurance.
One option is a “whole-life” insurance policy combined with a rider for chronic medical conditions. With this type of policy, if the policyholder needs nursing home care or another type of long-term care, he or she can utilize the death benefit in their whole-life insurance policy to pay for their care. And, should they pass away before the benefits in their policy are exhausted, their heirs will receive the remaining proceeds under the policy.
Another option is a “hybrid life and LTC” policy. This type of insurance policy is sold as a single, lump-sum premium, which may make it attractive to a person who wants a policy that is “one-and-done.” It also has the advantage of taking the guesswork out of LTC.
While long-term care insurance was often seen as a good deal in years past, these days people have other options for long-term care planning. With regards to any of these options, however, it is important to read the fine print, so you understand exactly what the policy will cover. Because any insurance policy can be complex, those who are going through the process of long-term care planning may want to discuss their situation with an attorney.