In our third and perhaps
final installment for business owners on Long Term Care expenses, let me offer
a Hybrid Solution. I call it Hybrid in
that while it is a Life Insurance policy, its’ main driving objective is to
cover Long Term Care.
You see most Life
Insurance policies have an annual premium.
This plan has an option of a one pay, 3, 5 or ten pay plan. There is also a feature called return of
premium. This means that at some point
in time, you can change your mind and receive a return of your initial premium
minus and loans, withdrawals you may have received.
Again not many companies with a cash value feature offers this benefit. I know of only one in New York.
Keep in mind while are
other features in such a plan, the main focus is to provide funds to meet Long
Term Care expenses. The traditional plan’s
main focus (Part Two solution) was to provide Life Insurance with a special,
added cost rider, of providing funds for Long Term Care costs.
In closing, I stress that
the way I and my company approach any financial planning area is to
start from what are your objectives. That
is why I offered three solutions; Paying
Costs out of pocket, traditional Life Insurance with a Long Term Care rider and
lastly the Hybrid Plan.