Personal Finance

Friday, July 24, 2015

Discover new options for today’s long-term care insurance

Insurance Specialist, Rick Roberts, discusses new insurance products that combine traditional insurance benefits, with long-term care benefits.



Long-Term Care Explained

Traditional long-term care policies require you to pay monthly premiums that typically increase over time. In return, when a triggering event occurs, such as an illness requiring an extended stay in a long-term care facility or residential improvements in order to remain home, the policy pays all or a portion of the qualified costs to the facility.

With the high cost of long-term care facilities, those who don’t have long-term care insurance run the risk of having to use their personal assets to pay for care. For many, the cost of long-term care insurance does make sense to protect personal assets from a catastrophic illness. For others, long-term care premiums are so expensive that it’s hard for them to justify this expense for a benefit they may never use.

New “Hybrid” Products Combine Long-Term Care Benefits, Death Benefit, or Return of Premium*

There are new insurance options available in the marketplace that combine long-term care insurance with traditional insurance benefits like payouts to your heirs upon your death. These products help to reduce a client’s concern about paying for insurance they might not use.

Here is how they work:

  • Premiums are paid to the insurance company either in one lump sum or annually. 
  • In return, the insurance company provides income tax-free reimbursements for qualifying long-term care expenses, an income tax-free death benefit if care is not needed, or options that return all or a percentage of your premium after a certain period of time.*

The advantage over traditional long-term care insurance is that the client now receives a guaranteed benefit based on how their life unfolds. If they do require long-term care, they can receive tax-free reimbursements for qualifying long-term care expenses. If they don’t, their heirs receive a tax-free death benefit, just like traditional life insurance. And, if clients’ circumstances change, or they decide to discontinue coverage, a return of premium feature can get all or a portion of their principal returned to them.

These new options may make the decision to purchase long-term care easier for some clients. Long-term care, like any other insurance product, should be considered as part of your total financial plan.

If you considered long-term care in the past, these new options might be worth another look.

We can educate you on a variety of options that fit your current and future needs.

*Return of premium features vary by insurance carrier and generally apply to lump-sum policies only and after a period of time such as 5 years.


Rick Roberts
Vice President/Insurance Sales Director

Rick oversees the distribution of Life, Disability, and Long Term Care Insurance Products for Janney Montgomery Scott LLC.

A 35-year veteran of the insurance and financial services business, Rick has previously held Sales Management positions with UNUM and The Hartford with overall responsibility for Insurance Sales. A graduate of John Carroll University, Rick also holds the Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations from The American College. He is a Fellow of the Life Management Institute and is a past President of the Philadelphia Chapter of National Association of Insurance and Financial Advisors.


Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any taxrelated statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Updated 5/10/2017.

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