If you are interested in purchasing long term care insurance
in Florida, then you may be surprised to find that everything isn’t as cut and
dry as you may have thought. There are three options to consider: a long term
care policy, a fixed annuity with long term care benefits, or a life insurance
policy that has a long term care rider incorporated into it. Here is some helpful
information for choosing the route that is best for you and your family.
Stand-Alone Long Term
Care Policy
The most common way to purchase long term care insurance in
Florida is via a stand-alone policy. However, these can be risky and are
therefore not for everyone. Not only are these policies incredibly expensive,
but they do not gain any cash value over time. The premiums often increase over
time as they are not ‘locked-in’ as they are with life insurance policies.
Finally, the underwriting process involved with obtaining such a policy—or even
utilizing the benefits it was designed to provide—can be time consuming.
However, this type of policy will undoubtedly provide the best benefits
available when it comes to long term care.
Fixed Annuity with
Long Term Care Benefits
A fixed annuity with long term care benefits is not as
expensive as a stand-alone policy, but it also carries some risks. An annuity
is much like a CD; it provides a steady income stream for life. However, these
are difficult to justify in today’s market since the interest rates on
annuities are so low. Consumers who either cannot afford a long term care
policy or who do not want to go through with purchasing a policy they may never
use should explore this option for obtaining long term care insurance in
Florida anyway—especially if they already have an annuity. By adding an
additional 2% to 3% rider, you can obtain the benefits you want at a lower
cost.
Life Insurance Policy
with a Long Term Care Rider
The way a long term care rider works with a life insurance
policy is actually quite simple. If you need life insurance and you have
already purchased a policy, speak to your insurance agent about the cost of
adding such a rider. When the long term insurance benefit needs to be used,
this triggers the rider and the cash needed to pay for the care is taken from
the cash benefit that would be paid out in the event of your death. This is generally
only a good idea for those who have life insurance policies worth quite a bit
of money since long term care is expensive and a death benefit should still be
present for surviving family members.
Long term care insurance in Florida can be a bit complicated
to say the least, but the best option for you often depends on the types of
insurance and investments you have already made. If you already have a fixed
annuity, adding benefits to this just makes sense. Similarly, if you have a
high-value life insurance policy, then adding a rider to this is much more
affordable than purchasing a stand-alone policy.
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