NH Long Term Care Insurance

Long Term Care Insurance in New Hampshire

Thinking about Long Term Care (LTC) Insurance can be very intimidating because of its cost alone. It also forces us to consider our own possible demise as we get older. The fact is however that whether we plan for the future or not, it will come regardless. The question is, do you want to have more control of where you will be spending your final years? Without Long Term Care Insurance, it could be difficult to have choices.

Here are three true stories from real HPM Insurance clients and how they benefited from Long Term Care Insurance:

  1. A client purchased a LTC policy while in his 50s and did not expect to use it for at least 20 years. He reached out to the agency a couple of years later, from a nursing home, in the final stage of his life to thank us for helping him obtain LTC coverage. He was able to let go in peace knowing his wife had enough resources to live comfortably into retirement.

  2. A client who purchased LTC coverage from HPM Insurance developed Alzheimer's disease a few years after purchasing the policy. He passed away, but his wife could continue with her lifestyle as her assets where not needed to pay for his care while in the nursing home facility.

  3. A company executive purchased a Life/LTC policy before he retired. He suddenly passed away many years later but never needed the LTC benefit. His daughter was surprised to receive more than $150,000 tax-free benefit for being the executive's beneficiary.

What is Considered Long Term Care?

The term "Long Term Care" is interrupted as a range of services needed when one can no longer care for themselves on their own or live independently. This is due to either a cognitive impairment which requires continuous supervision or not being able to complete certain activities of daily living (ADLs) like getting up from a chair, getting dressed or bathing.

Why Consider NH Long Term Care Insurance?

Advances in medicine are keeping people alive longer than ever before. In the past, families were able to take care of aging parents but this is not easy or even possible for many working families today. Families in such situations quickly learn that elderly care at any level is cost prohibitive and can erase a lifetime of assets and savings very quickly. According to the US Department of Health and Human Services (DHHS), 70% of people who reach 65 will need some form of long-term care in their lifetime. The average rate for private payers in NH is $321.20 per day according to the Office of Finance's 2017 report for the NH DHHS. This equates to $117,238 a year so a real threat to anyone's financial well being.

How Can I Pay for Long Term Care?

  1. Any long-term care facility will accept "private payment" which means your own assets/money. This is not the preferred method for most people.

  2. The government will pay through Medicaid. This is a complicated process with strict laws on spending down your owns assets to a minimum. It is typically neither quick nor easy to work through this process and often requires legal representation, especially if there is a spouse involved.

  3. Use an insurance company's money and retain freedom of choice.

    Most people would choose the third option. To have this option available, it does take a little advanced planning with the purchase of Long Term Care Insurance with the ideal time to apply is typically in your 50s or early 60s while you are still healthy.

Types of Different Long Term Care Insurance in New Hampshire:

  1. Traditional Long Term Care Insurance: The most common of LTC insurance, it can address the cost of care but little else. If the LTC benefit is never used, there is no money back or death benefit.

    An advantage to this type of coverage is that premiums are paid over the insured's life with the coverage trigger being when one can not do at lease two of the six defined ADLs (continence, walking, dressing, eating, bathing and Toileting). Coverage can also be customized to suit an individuals needs and budget with a daily or monthly benefit amount and term from two years to the lifespan of the individual. The average benefit term we at HPM Insurance see is three to four years.

    Given how many options there are for coverage, it is recommended that you speak with an experienced insurance agent, like HPM Insurance of Amherst and Bedford, NH.

  2. LTC/Life hybrid: Like the name implies it takes the benefits of both LTC coverage if needed and a tax-free death benefit to a beneficiary if the LTC benefit is not used. The obstacle for this type of policy is that it often requires a single lump-sum payment or a very short installment period. A benefit though is that once it is paid, it is paid. Another benefit is that the LTC benefits are often broad and the death benefit often exceed the premium paid. Individuals are also able to customize their policy so a LTC insurance professional should be consulted.

  3. Life Insurance with a "living benefits" rider: This type of life insurance policy has coverage built in for protection against a disability and income replacement if the insured becomes chronically ill and unable to perform certain ADLs. It is may not be sufficient to provide a large enough long-term care benefit to be fully protected against the expenses of long term care but could be better than no coverage at all.

    It is important to remember that regardless of which type of policy you choose, coverage is not guaranteed and medical records, an interview and sometimes a medical exam is required. Applicants typically need to be in good health as once a chronic illness happens, it would be very difficult to purchase LTC insurance regardless of the price.

Why HPM Insurance?

At HPM Insurance, we have been writing Long Term Care Insurance in Milford and throughout New Hampshire for decades. There is too much money at stake to simply buy it without proper consultation. We have the experience necessary to lay out your options in a clear and considerate manner. We not only help you design a plan, but also guide you through the application and underwriting process as well.

Enter Your Zip Code above and let the professionals at HPM Insurance help protect your future today!