One of the most common questions our clients ask is “What happens to our premiums if we never need long-term care?” In the past this was an easy answer….they’re gone. With traditional long-term care insurance plans, you are simply paying non-refundable premiums to mitigate the financial consequences of a perceived risk. It’s just like auto insurance or homeowners insurance in the sense that if you don’t wreck your car or your house doesn’t burn down, the insurance company doesn’t refund your premiums.
Now there are some riders that are available that may allow you to get some of your premiums back if you die, but as a general rule, traditional long-term care insurance plans are “use it or lose it”. But the good news is things have changed in the long-term care insurance arena. Today we now have a whole new class of options called Asset Based or Hybrid long-term care insurance plans that are guaranteed to pay you back even if you don’t need long-term care.
Long Term Care Insurance You Can Count On
Many options can be funded with a single payment or with a series of ongoing payments much like traditional long-term care insurance policies. However there is one major difference if you choose to pay over time; the premiums are guaranteed level! Unlike traditional plans, the hybrid plans offer the stability of a guaranteed level payment that can never increase.
Asset Based and Hybrid long-term care insurance contracts also have a return of premium feature meaning you get your money back if you never use them. Many also include additional features that allow your estate to receive a tax-free benefit upon your death that is usually much larger than the premiums paid into the plan.
Contact Our Team Today
The overall odds are stacked against us meaning most of us will end up in a long-term care situation during our retirement years. But if you are lucky enough to avoid needing long-term care, today’s plans are guaranteed to pay you back in the event you don’t use them. If you would like to learn more about your options, contact us directly at the office by calling 425-748-8188 or visit us on the web at 525LongTermCare.com.