Annuity Alliance typically focuses on annuities on this website as we help consumers prepare for their retirement by choosing an insurance product (annuity) that guarantees lifetime income. However, insurance carriers have learned to adapt to today’s ever-changing world by adding more options to their products.

One of these options Annuity Alliance wants to focus on in this article is long-term care insurance (LTCi), especially since Long-Term Care Insurance Month runs throughout November. Long-term care (LTC) costs continue to escalate year-over-year, and based on statistics, seven out of 10 consumers will need some type of LTC during their lifetime.

In 2022, the costs are almost staggering when you think about how high they could grow in the next five, 10, or even 20 years. Based on carrier studies for this year, LTC costs range from $20,280 for adult day care to $108,408 for a private room in a nursing home in 2022.

Obviously, you would like to have the best care available if a potential long-term care situation arises within your life – with the ability to choose vs. having to “settle” for what you can afford. Most consumers haven’t prepared for potential healthcare expenses or LTC costs, which could lead them to dip into their hard-earned retirement dollars, have to sell assets (home, boat, etc), and adjust their spending habits.

Most LTCi products pay for most levels of long-term care (adult day care, assisted living, nursing homes, and home healthcare). There are plenty of long-term care insurance options available including standalone/traditional LTCi policies, hybrid life policies, and life insurance with a long-term care rider or an accelerated death benefit.

Did you know that some annuity products also offer long-term care insurance options? Carriers have noticed the interest in LTC protection as much as guaranteed lifetime income protection, so some carriers have developed annuity products that provide accumulation as well as LTCi benefits.

Annuity Alliance also knows of one top-rated carrier that’s launching a fixed indexed annuity with a long-term care option plus a wellness program all tied into one FIA product. If the LTC benefits are not used, the annuity still has accumulation potential throughout the term.

Based on multiple underwriting components (age, health, etc.), you may not get approved for life insurance, long-term care insurance, or hybrid policies. However, you could get approved for LTCi through the purchase of an annuity with a LTC rider. Some carriers also do not require a medical exam for the LTC coverage within the annuity.

Want to protect your retirement dollars and have a plan in place in case long-term care is needed during your lifetime? Contact Annuity Alliance to schedule an appointment to discuss some annuity options with LTC benefits.