Long Term Care problems Solved
Ask the expert, Dennis H. Lentin

Instead of buying Long Term Care insurance, I have been hearing about annuities that can also cover you for Long Term Care. Are they more expensive? What are the benefits and what are the negatives?

What you hear about and what you get may be two different things. The Annuity and Long Term Combination Plan that I have seen is in reality two separate plans. One plan is an Annuity that has all of the benefits and negatives of a stand alone annuity, the other plan is a Long Term Care policy that has all the negatives and benefits of a stand alone Long Term Care plan.

When purchased together a lump sum of money is paid to the insurance company, who then pays for the Long Term Care plan with the proceeds of the annuity. This type of plan only benefits those who have a large sum of money that they want to pass on after their demise, and assure that they will have funds to provide for their Long Term Care if needed.

The negative is that you loose control of your asset and may loose the ability to make changes if the government should change the Long Term Care status quo. There is another similar type of plan that combines Life Insurance and Long Term Care. Insurance into one policy, this plan is very cost prohibitive for those who are not wealthy and can lead to an UNDERFUNDED Long Term Care plan.

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Dennis H. Lentin
DL Financial Consultants
3852 Black Forest Circle,
Boynton Beach, Florida 33436