Long Term Care Alternatives

What if I cannot qualify for Long Term Care insurance? How can I protect my family? After 25 years, Long Term Care insurance is still the single, most cost-effective way to finance your long term care needs. Nevertheless, it is not appropriate for everyone. For those that can't qualify for insurance or for whom it is not appropriate, there are alternatives.

Long Term Care Annuities
LTC Annuities combine the security of an annuity investment with increased cash for qualified Long Term Care expenses. LTC annuities can enhance the return on your investments and generally have lower underwriting restrictions than insurance. Immediate annuities are also available to provide increased annuity-income payments for clients already in care situations.

Reverse Mortgages
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in their home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower is no longer using the home as their principal residence. HUD offers a federally-insured reverse mortgage for homeowners over 62.

Life Insurance
These are sometimes sold in combination with long term care benefits or with a rider for long term care. The policy's death benefits are usually reduced by the long term care benefits paid out for care while the person is still living.

Life Settlements
Depending on your age, health and policy features, it may be possible to sell your existing life insurance policy for significantly more than the cash value and use the proceeds to fund your long term care needs. It is even possible to sell some term life insurance policies that have no cash value.