Long-Term Care Planning Solutions
Planning for potential long-term care expenses – assistance with daily activities at home, in assisted living, or a nursing facility – is a vital step for financial security later in life. Since health insurance and Medicare generally don’t cover extended custodial care, proactive planning is key. The good news is there are more solutions available today than ever before. I’m Andy Stroman, founder of Stroman Insurance Services, and I specialize in helping clients understand and compare the different strategies available to fund potential long-term care needs, including traditional LTC insurance, modern hybrid policies, and short-term care options. My guidance helps you find the right approach for your future.
Your Long-Term Care Funding Options
There isn’t just one way to plan for long-term care costs. I help you understand the primary approaches:
Traditional Long-Term Care Insurance
A standalone insurance policy designed specifically to pay for qualified long-term care services. Often provides the most LTC benefit for the premium dollar, but premiums may potentially increase over time, and benefits are typically only paid if you need LTC.
Hybrid Life Insurance + LTC Benefits
Combines a life insurance policy (providing a death benefit to beneficiaries) with riders or features that allow you to accelerate or access funds for qualified long-term care expenses if needed. Often features guaranteed level premiums, provides value even if you don’t need extensive LTC (via death benefit or cash value), and underwriting may sometimes be less stringent than traditional LTC.
Hybrid Annuity + LTC Benefits
Uses the value of an annuity contract to provide funds for long-term care, often with features that can enhance the LTC payout beyond the annuity’s base value. Can offer tax advantages, potential for legacy if LTC not fully used, leverages existing assets, often has simpler underwriting than traditional LTC.
Short-Term Care / Recovery Care Insurance
Designed to cover care needs for shorter durations (e.g., less than a year), often following hospitalization or during recovery. Can cover home health care, facility stays, etc. Typically has much less stringent medical underwriting than traditional LTC, making it an option for some who may not qualify otherwise. Premiums are generally lower, but benefit periods are limited.
How I Help You Choose the Right LTC Strategy & Policy
My process focuses on finding the best approach for you before diving into specific policies:
Comparing Strategies
My first step is helping you understand the fundamental pros and cons of each approach (Traditional vs. Life Hybrid vs. Annuity Hybrid vs. Short-Term Care) based on your age, health, financial situation, and what concerns you most (e.g., premium stability, leaving a legacy, ease of qualification).
Tailoring Benefit Design
Once we identify a suitable strategy, I help you customize key policy features like the benefit amount (daily/monthly), benefit period, elimination (waiting) period, and crucially, inflation protection options.
Comparing Carrier Quotes
For the chosen strategy and benefit design, I provide and compare personalized quotes from multiple highly-rated insurance carriers specializing in these solutions.
Key Considerations in LTC Planning
Regardless of the strategy chosen, important factors include:
- Inflation Protection: Essential for ensuring your benefits keep pace with rising care costs over decades. I explain the different options (e.g., 3% compound, 5% simple).
- Timing: Applying when you are younger and healthier generally leads to lower premiums and makes qualifying through medical underwriting easier.
- Underwriting: Most LTC solutions (except some short-term care) require answering health questions and reviewing medical records. I explain this process for the relevant product type.
What clients have to say
“Outstanding knowledge, service, and communication-recommend strongly to navigate healthcare insurance options!”
“Andy was wonderful to work with and made everything so easy on my end. He was not pushy and did not rush me in making a decision. Will definitely use him again for insurance needs!”
“Andy is very knowledgeable and professional. He helped us decide which Medicare plan is best for us. I would highly recommend him. “
My Application & Underwriting Support Service
Applying for any type of LTC protection involves detailed steps:
Application Guidance
I assist you in accurately completing the application and any necessary health questionnaires.
Underwriting Navigation
I act as your liaison with the insurance carrier during the underwriting process, facilitating communication and keeping you informed.
Policy Review & Delivery
Upon approval, I carefully review the issued policy with you to confirm the benefits and features.
4. Ongoing Support
I’m here whenever you need me for billing and claims issues.
Ready for professional Long-Term Care guidance?
Schedule your free consultation. I’ll help you understand your options and find the right coverage for your needs.
Frequently Asked LTC Planning Questions
Here are answers to common questions about planning for long-term care:
Costs vary dramatically based on the type of solution (Traditional, Hybrid Life, Hybrid Annuity, Short-Term Care), your age and health when you apply, and the specific benefits you choose (amount, duration, inflation protection). Hybrid plans may involve repositioning existing assets. My service focuses on providing personalized quotes for the specific strategies and benefit levels we determine are appropriate for you. Using my broker services does not add to your cost.
No, Medicare and standard health insurance do not cover most long-term custodial care (help with daily living). The main problem these solutions address is the potentially devastating cost of needing extended care at home or in a facility. Different solutions also solve other problems: Hybrid plans address the concern of “what if I pay premiums but never need care?” (by providing a life insurance or annuity value). Short-term care can solve the problem of qualifying for coverage if health issues prevent eligibility for traditional LTC. I help clarify what Medicare doesn’t cover and align the right product solution to your specific concerns.
There’s no single “better” option; they suit different needs and priorities. Traditional LTC might offer the most pure LTC benefit per dollar but lacks flexibility and premiums might rise. Hybrid Life/LTC provides legacy value and premium stability but might offer less LTC benefit per dollar. Hybrid Annuity/LTC leverages existing assets efficiently. Short-Term Care offers easier underwriting for shorter coverage needs. My process involves explaining these trade-offs in detail based on your specific financial picture, health, and goals.
The “best” approach is the one that aligns with your planning objectives, budget, and health profile. The “best” company for that chosen approach will be one that is financially strong (A.M. Best rating is critical here), offers competitive pricing for the benefits selected, and has a good reputation for claims. My service involves comparing relevant, highly-rated carriers that offer the specific type of solution (Traditional, Hybrid, STC) that we determine is the best fit for you.
Financial strength ratings (e.g., A.M. Best) are paramount due to the long-term nature of these policies. State Department of Insurance complaint records can offer some insight. Because policies are complex and underwriting is involved, consumer reviews are often anecdotal and specific to individual experiences (claims, underwriting). We focus on financially stable, reputable carriers during our comparison.
It depends greatly on the specific health issues and the type of product. Traditional LTC insurance has the strictest medical underwriting. Hybrid Life/LTC underwriting can sometimes be slightly more lenient than traditional LTC. Hybrid Annuity and especially Short-Term Care plans often have the least stringent underwriting requirements. Part of my service is understanding your health situation upfront to guide you towards strategies you are more likely to qualify for. Applying earlier when healthier is always best.