Types of LTC plans
Five ways to plan, one that fits you
Care costs are rising faster than inflation, and they vary widely by the kind of care and where you get it. The work is matching cover to your health and your budget.
First call is free · English / 한국어 · CA Lic. #4582405
The five shapes of long-term care
They all prepare for care, but they work differently. Knowing the trade-offs makes the choice easier.
- Traditional
Traditional LTC
Pays only if care is needed. Premiums can start low but may rise at renewal, and nothing comes back if you never claim.
- Couples
Joint plan
One plan with a shared pool of benefits for a couple. Useful when one spouse would struggle to qualify alone, or to lower the premium.
- Life
Life policy + care rider
Draw on the death benefit early when care is needed. Whatever you use is no longer there for your family.
- Immediate
Immediate care plan
An annuity-based option for people whose age or health rules out other plans. A lump sum starts paying benefits right away or soon after.
- Asset-based
Asset-based (hybrid)
A life policy or annuity with care coverage added. If care is needed, the benefit grows; if not, the money remains as a death benefit or income.
Coverage, triggers and premiums vary widely by product. All require health underwriting, and the healthier you are, the more is open to you.
How the benefit is paid
Two plans with the same monthly maximum can work very differently, depending on how the money is released.
- Reimbursement
Reimbursement
Pays the qualified care costs defined in the contract, against what you actually spend, up to a monthly cap. Bills and receipts each month, and limited cover for informal caregivers.
- Cash indemnity
Cash indemnity
Up to 100% of the monthly maximum is paid in cash. No receipts and no limits on how you use it, including paying a family member who cares for you.
How I help you choose
- 01
Start with your health
Which plans you can get depends on health underwriting, so we look at that first.
- 02
Pick a budget style
A lump sum or yearly premiums point you toward different products.
- 03
Compare how it pays
Not just the amount, but how the benefit is paid, side by side.
A tax point: the Pension Protection Act
Under the Pension Protection Act of 2006, which took effect in 2010, benefits from qualifying long-term care coverage, especially annuity-based plans, may be paid free of income tax. This matters if you are thinking of using an existing annuity for care. Please talk to your tax advisor about your own situation.
Questions people ask
Why would a couple share one plan?
You share a single pool of benefits. It can help when one spouse would struggle to qualify alone, or when you want to lower the premium.
What happens if I use a life policy’s care rider?
Care costs are paid out of the death benefit early, so whatever you use comes off what your family receives later.
Can I get coverage if I am older or have a condition?
Immediate care plans, which are annuity-based, exist for people who cannot get a regular policy. Whether one fits depends on the product and your health, and we check that together.
Reimbursement or cash indemnity: which is better?
Reimbursement pays qualified costs against receipts; cash indemnity pays cash up to the monthly cap to use as you like. Which suits you depends on whether family will care for you and whether you plan to spend time in Korea.
Are care benefits taxed?
Under the Pension Protection Act, benefits from qualifying long-term care coverage may be free of income tax. It depends on your situation, so please check with your tax advisor.
Related services
신현인 Sam Shin
Retirement planning specialist · I call you back myself
Book a free call
Leave your name and number and I will get back to you personally.
A call back within one business day
In English or Korean, at a time that suits you.
-
Carriers compared side by side
The terms on one page, sent to you by email.
Free, with no obligation
Tell me you are not interested and I will stop.
Looked after long after you sign
I reach out before maturities and renewals.
Prefer to talk now? (213) 507-2224