LTC Alternative Products

Product Overview
For people who don’t want (or can’t qualify for) long-term care or short-term care plans, there are several alternative products that may be obtainable. These options include:

  • Life insurance with a long-term care rider – By adding this feature on top of a life insurance policy, the death benefit (from the life insurance) can exceed $200,000 and be accelerated to pay for long-term care.
  • Critical-care and critical-illness insurance – These types of coverage offer lump-sum cash payments to policyholders who are diagnosed with cancer, stroke, heart attack, or other serious illnesses. Major carriers offer these products with daily or monthly benefits for inpatient rehab and continuing care; they are usually less expensive than traditional long-term care insurance. This coverage is only valid if the illness or injury is recent and not previously diagnosed.
  • Annuity with a long-term care rider – The IRS changed regulations so that money invested in a deferred annuity with an LTC rider can be used — tax-free — to pay for long-term care. This provides steady, monthly payments to be used specifically to pay for care; however, most annuities require a substantial up-front payment, and many times the money is locked up for five to ten years.

Why Agents Offer LTC Alternative Products
Just as LTC Alternative Products aren’t the best fit for every client, they aren’t always the best fit for Agents. Consider these questions:

  • Are these plans beneficial for the people in your community and the areas you serve?
  • Do you offer similar/competitive products?

There are many compelling reasons to offer LTC Alternative Products, such as:

  • You can help families with some of the most difficult decisions of their life
  • You can provide your clients with peace of mind, as they will know they have a health plan behind them
  • You’ll be serving the needs of your clients and community
  • You can offer a profitable product that will help your bottom line

How to Get Started with LTC Alternative Products
If you decide to offer LTC Alternative Products, we recommend talking to someone from the Premier team of experts. They’ll provide answers to your questions, and have tools available to support your new product offering.

Just complete this contact form and we’ll get in touch as soon as possible: