In this episode, Wade and Alex discuss the different features of long-term care insurance. They cover topics such as waiting periods, benefit periods, benefit amounts, inflation adjustments, and methods of payment. They also touch on the administrative aspects of managing long-term care insurance and qualifying expenses. In this conversation, Alex and Wade discuss various aspects of long-term care insurance. They cover topics such as the definition of activities of daily living, the differences between policies, the option for couples to pool their benefits, the concept of hybrid policies, underwriting requirements, coverage for living abroad, liquidity and death benefit options, ways to lower premiums, and the importance of sharing your long-term care plan with family members. The conversation concludes with a discussion on implementation and monitoring of the plan, including the importance of staying healthy and reviewing the plan regularly.

Takeaways

• Long-term care insurance policies have different features that need to be considered, such as waiting periods, benefit periods, and benefit amounts.


• Waiting periods determine how long you have to wait before the benefits kick in.


• Benefit periods determine how long the benefits will last.


• Benefit amounts can be paid per day or per month, and the total benefit pool depends on the policy.


• Inflation adjustments are important to consider to protect the value of the benefits over time.


• Methods of payment include reimbursement, indemnity, and cash methods.


• Managing long-term care insurance can be administratively burdensome, and it may be helpful to have a trusted person or professional assist with the process.


• Qualifying expenses for long-term care insurance coverage depend on the policy and may include in-home care, assisted living, nursing home care, and more. Understand the definition of activities of daily living and how they are defined in different policies.


• Consider the option for couples to pool their benefits in a joint policy.


• Explore hybrid policies that combine long-term care insurance with other benefits.


• Be aware of the underwriting requirements and shop around for the best health classification.


• Check if the policy covers living abroad if that is a consideration.


• Consider the liquidity and death benefit options in hybrid policies.


• Explore ways to lower premiums, such as choosing a lower level of inflation protection or a shorter benefit period.


• Share your long-term care plan with relevant family members and make sure they are aware of the policy and any care coordinators.


• Implement and monitor your plan regularly, reviewing it annually and making adjustments as needed.


• Stay healthy and take care of your health to reduce the need for long-term care.

Chapters

00:00 Understanding the Different Features of Long-Term Care Insurance

06:10 Navigating Waiting Periods and Benefit Periods

08:13 Determining Benefit Amounts and Inflation Adjustments

15:21 Exploring Methods of Payment for Long-Term Care Insurance

24:28 Qualifying Expenses for Long-Term Care Insurance Coverage

24:56 Understanding Activities of Daily Living and Policy Differences

27:17 Pooling Benefits for Couples in Joint Policies

28:37 Exploring Hybrid Policies

29:00 Navigating Underwriting and Health Classification

30:36 Considering Coverage for Living Abroad

31:38 Understanding Liquidity and Death Benefit Options

33:05 Lowering Premiums through Various Strategies

35:23 Sharing Your Long-Term Care Plan with Family Members

37:57 Implementing and Monitoring Your Plan

39:16 Staying Healthy to Reduce the Need for Long-Term Care

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”