LONG TERM CARE INSURANCE

The need for long term care can result from illness, impairment, or even something as unexpected as an accident or injury, so it’s critical to take action to help protect your future. If you were to require long term care, you would want to be able to cover your expenses and choose how and where you get assistance. Long term care (LTC) insurance can not only help you protect your assets — it can allow you to maximize your independence.

Long term care insurance is rather new to the insurance scene. We're all used to life insurance, car insurance, and disability insurance, as you might not realize it, but if you're working, Uncle Sam has you covered through Social Security. The whole deal with insurance is to protect yourself against a major loss that you can ill afford. Bottom line, you don't want to take the risk. Insurance companies know that lots of people are just like you. So they ask large numbers of people to pay a set amount of money and they'll take the risk for you. The more the risk is shared, the better off everyone is with the potential for lower premiums.

5 REASONS TO BUY LONG TERM CARE INSURANCE:

HOW DOES LONG TERM CARE INSURANCE WORK?

Costs for long term care are generally increasing as are lifespans, so your need to plan ahead for care has never been more important. LTC insurance helps you protect your assets from being used by providing a pool of benefits you can use to help reimburse your expenses for care. That way, should the need for care arise, you can secure your savings and your family’s future.

LTC insurance reimburses you for services that can help improve the quality of life for those who are chronically ill and are unable to engage in everyday activities such as eating, dressing, bathing, and getting in and out of bed without assistance or who have a cognitive impairment. A comprehensive LTC insurance policy may provide coverage for long-term care needs in the home, community-based settings, an assisted living facility, or nursing home. By providing more choices and more control over care options, LTC insurance can help you face the future with confidence.

1. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.
2. It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
3. Guarantees are dependent upon the claims-paying ability of the issuing company.
4. “Standard and Poor’s®,” “S&P®,” “Standard and Poor’s 500,” and “500” are trademarks of Standard & Poor’s and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in this Product. The S&P Composite Index of 500 stocks (S&P 500®) is a group of unmanaged securities widely regarded by investors to be representative of large-company stocks in general. An investment cannot be made directly into an index.
5. The use of trusts involves complex tax rules and regulations. Consider enlisting the counsel of an estate planning professional and qualified professional legal and tax advisors prior to implementing such sophisticated strategies.