Consider Long-Term Care Insurance and Alternatives | Law Firm Newswire

Consider Long-Term Care Insurance and Alternatives

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Virginia Beach, VA (Law Firm Newswire) January 4, 2016 – The latest survey conducted by Genworth reveals that among individuals without long-term care insurance coverage and have no plans to purchase such coverage within the next five years, only 15 percent have a backup plan. There are choices for financing long-term care for many Americans prepared to make compromises.

“In planning for long-term care, one must become aware of the various options available in order to select a policy that provides the desired amount of care and is not cost-prohibitive,” said Andrew H. Hook, a Virginia elder law attorney with Hook Law Center, with offices in Virginia Beach and northern Suffolk.
One such option is an annuity, which offers an income stream for the duration of one’s lifetime with a minimum amount of risk.

However, annuities have come under scrutiny due to deceptive sales practices. Nevertheless, annuities can be used in conjunction with attached long-term care riders for some individuals who would be unable to obtain insurance under a conventional plan because of their present or prior medical conditions, according to Brian Gordon, president of MAGA, a national long-term care brokerage firm located in Chicago. Some insurers, including Lincoln, Mass Mutual and Guardian, provide hybrid life insurance plans with attached long-term care riders.

The advantage of hybrid long-term care insurance policies is the ability to hedge several risks using the same dollar, according to Yan J. Katz, insurance specialist with the Bulfinch Group. If the policyholder has no need for the long-term care rider, the premiums paid may be recovered, and transferred to one’s heir via the death benefit instead of being lost.

While single-premium whole life insurance policies with attached long-term care rider choices only necessitate that a deposit is paid once instead of through continuous contributions, the disadvantage of such plans is the high cost. Hybrid long-term care policies are far from ideal because several of these plans with riders attached place the maximum figure to be applied to long-term care benefits at half of the policy’s face value. Mike Piershale, president of the Piershale Financial Group, said that if one has a death benefit of $100,000, one could be restricted to $50,000 for nursing home care, thereby leaving one with a severe deficit in the event one has to remain in a nursing home for a long period of time.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • It’s Time to Update Your Estate Plan!
    <p>Ensuring your estate plan is up-to-date is a critical part of ensuring that your lifetime’s work benefits you and your family the way YOU want it to. Our clients frequently ask us when they should review or update their estate plan – for this, there is no short answer. However, if any of the statements [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/06/28/its-time-to-update-your-estate-plan/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/06/28/its-time-to-update-your-estate-plan/" target="_blank">It's Time to Update Your Estate Plan!</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Tips for Avoiding Identity Theft
    <p>A headache no one wants to deal with — but over 13 million Americans fell victim to last year — is identify theft. Take these steps to minimize your risk. Choose online passwords carefully. Use a different password for every online account; the passwords you use to log in to your e-mail address and your [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/06/21/tips-for-avoiding-identity-theft/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/06/21/tips-for-avoiding-identity-theft/" target="_blank">Tips for Avoiding Identity Theft</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Estate Planning for Pet Owners
    <p>Several of us at the Hook Law Center are pet owners.  Our pets are important to us, like members of our families.  We find that many of our clients are pet owners, as well, but they often forget to make provisions for their pets in the event that they were to become unable to care [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/06/14/estate-planning-for-pet-owners/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/06/14/estate-planning-for-pet-owners/" target="_blank">Estate Planning for Pet Owners</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Not Gone, but Occasionally Forgotten . . . Proposed Regulations Remind of Estate Tax
    <p>In 2022, the federal estate tax exemption is $12.06 million. This means that an individual can pass up to $12.06 million without paying a federal estate tax (Virginia and North Carolina have both essentially eliminated their estate tax). Thus, for the vast majority of Americans, there is no concern about having to pay a federal [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/06/07/not-gone-but-occasionally-forgotten-proposed-regulations-remind-of-estate-tax/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/06/07/not-gone-but-occasionally-forgotten-proposed-regulations-remind-of-estate-tax/" target="_blank">Not Gone, but Occasionally Forgotten . . . Proposed Regulations Remind of Estate Tax</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • How to Cope with End-Stage Dementia
    <p>No one likes to imagine what will happen if a loved one is diagnosed with dementia. The reality of a dementia diagnosis is difficult and heartbreaking to face, but if you fail to face it before the situation becomes a crisis, you may actually be doing your loved ones more harm than good. This is [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/05/31/how-to-cope-with-end-stage-dementia-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/05/31/how-to-cope-with-end-stage-dementia-2/" target="_blank">How to Cope with End-Stage Dementia</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required