After doing your homework, you may decide that LTCI is not the right choice for you. Still, there are several steps you can take to plan for the possibility that you might need long-term care in the future. This is not an exhaustive list, but it should give you a few ideas about where to start.
Life insurance
If you have a cash value life insurance policy, make sure you know the rules surrounding policy loans and cash withdrawals. Most policies allow you to access your cash value in one of these ways, but the amounts may be limited and there could be tax consequences worth considering. Also, find out if your policy allows you to use part of the death benefit for medical expenses or long-term care while you are alive. (Policies with an accelerated benefits rider typically allow this.) Should you become terminally ill, you may also have the option to sell your life insurance policy to a viatical settlement funding company and use the money to pay for your care. You will typically get 40 to 85 percent of the policy's face value from a viatical settlement.
Reverse mortgage
If you own your home outright, or if you have a lot of equity in your home, you could also consider a reverse mortgage. Basically, a reverse mortgage gives the lender a lien (or mortgage) on your home, and you receive either a lump sum of money or prearranged monthly payments. You typically don't have to repay the loan as long as you live in the home. However, if you move or if the house is sold, the loan must be repaid out of the proceeds of the sale. A reverse mortgage can be an easy source of cash, but it could also complicate matters if you plan on leaving your home to your heirs.
Savings
You could use your personal savings to pay for long-term care, should the need arise (self-insurance). If you choose this option, you'll have to estimate how much money you might need to cover long-term care expenses and start an appropriate savings plan. There's a good chance that the amount you'll have to put aside each month to cover future medical expenses will greatly exceed what you'd pay for LTCI premiums. However, in some cases buying LTCI is not an option--for example, if a preexisting condition prevents you from qualifying for coverage. If you choose to self insure, you could save a lot of money (because you won't be paying LTCI premiums), but there's always the chance that your savings won't be adequate to cover your actual long-term care expense.
Friends and relatives
You may have friends and family willing to care for you if you are unable to take care of yourself. Although you might be hesitant to ask, it's a good idea to talk to those you are close to, before making any decisions about long-term care insurance. If you can count on their help in the event of your incapacity, you may be able to purchase a lesser amount of LTCI coverage.
Please Note: The information contained in this Web site is provided solely as a source of general information and resource. It is a not a statement of contract and coverage may not apply in all areas or circumstances. For a complete description of coverages, always read the insurance policy, including all endorsements.