timing: not immediate - For younger individuals (under 65 years old)

Whole life insurance with a long-term care rider

These newer hybrid products make great sense. You get life insurance AND long-term care insurance. These policies can often be acquired for relatively little money.

Fixed Annuity with long-term care benefits

Here you place assets into a fixed annuity. This has long been a key strategy for protecting money for later use and securing assets from Medicaid eligibility standards. With this product, if you need to use the annuity for long-term care expenses, you receive 2 to 3 x the annuity value to do so. If you have a $150,000 annuity, you could receive $300,000 or up to $450,000 for use on long-term care. The money spent on long-term care is federal income tax-free. And there are ways to protect the original annuity value so it is passed on to your beneficiaries.

A big challenge is convincing younger people that long-term care will be a part of their future.

Let’s get clear about some things: