Contributor: Barbara Stahlecker
Traditional LTCi was never meant to be an investment product. Just like homeowners or auto insurance, the client is paying pennies on a dollar to an insurance company to assume a financial risk. For the most part, if you don’t use the policy, you don’t get any premium back. This is not a new concept and in fact, is the basis of all insurance.
Thankfully, today’s insurance companies are offering more modern products. It is possible for policyholders to get their money back, lock-in lower rates, deduct the premiums and protect their estate from a Medicaid spend-down. As such, LTCi still provides great value and is not subject to the ups and down of other investment options.