Long-term care can be costly. When considering retirement planning, we plan on enjoying our golden years. We try not to think of being ill or in a long-term care facility. We purchase annuities because they help create financial stability. The customizable insurance contracts can include a long-term care rider who will pay for our care if we become ill and require an extended stay in a nursing or rehabilitation facility. Let’s continue reading to learn more.

Gaining Access to Your Long-Term Care Fund

You must meet the requirements to gain access to your long-term care fund. It can include assistance with most daily activities like showering, dressing, and general mobility. Both temporary and permanent conditions apply. Once you have proven eligibility, you can receive a monthly payout from your annuity.

Additional Options

Some annuity programs allow you to withdraw one large sum instead of receiving monthly payouts. Immediate annuities are also available, where you can receive monthly payments after making one single payment. These programs may have tax implications and may not cover all the expenses associated with your care.

When Does a Long-Term Annuity Make the Most Sense?

Long-term annuities are a good option if you are trying to avoid buying long-term care insurance coverage. As long as you have a guaranteed lifetime income, an annuity may be the best option for you. You get the best of both worlds because the long-term care coverage is combined with your annuity. An annuity that includes your long-term care coverage is more convenient and only requires one monthly premium payment.

Long-Term Care Costs

Long-term care can be costly depending on where you live, sometimes averaging as much as $8,200 per month for a semi-private room. Assisted living facilities can cost well over $4,600 per month. With the cost of healthcare steadily rising, these costs will continue to increase as well. General healthcare of any kind is expensive to begin with. Long-term care also includes facility costs and round-the-clock assistance.

Long-Term Care Annuity vs. Long-Term Care Insurance

Both long-term annuities and insurance policies are designed to pay for your expenses associated with a long-term illness. Long-term care insurance coverage does have significant differences, including the risk of increased premiums over time. Annuities that include a long-term care rider will provide monthly payouts whether the coverage is required or not. Long-term insurance only pays if a health event occurs that requires long-term care.


Navigate Long-Term Care Coverage with Premier Risk, LLC

Understanding long-term care coverage doesn’t have to be confusing. Consult the agents at Premier Risk, LLC today to learn more. We can explain how an annuity works and answer any questions you may have. Once you have the information, you can make an informed decision. Don’t put your financial future at risk! Contact us and get the coverage you need today!