Long Term Care Personal Pension Plans
What is an LTC Personal Pension Plan?
Long Term Care Pensions are a recent and innovative type of Fixed Pension because they have built-in Long Term Care (LTC) benefits that can provide you with up to three times your pension accumulation value in future LTC benefits.
IMPORTANT: IF YOU DO NOT KNOW HOW FIXED PENSIONS WORK PLEASE REVIEW FIXED PENSIONS THEN RETURN HERE TO SEE HOW LONG TERM CARE BENEFITS ARE ADDED.
How are LTC benefits created and added to a Fixed Pension?
Year 1 – Your LTC Pension is created and begins the accumulation phase of a normal Fixed Pension. Also beginning will be a two year waiting period before you can begin using LTC benefits.
Year 2 – Your pension accumulation value continues to increase and the two-year waiting period to receive LTC benefits will end after this year is over.
Year 3 – Your pension increases in value throughout the entire accumulation phase while the beginning of Year 3 allows you access to LTC benefits if you should now need them.
What Long Term Care benefits will a LTC Pension typically provide?
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Nursing Home Care
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Home Health Care
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Assisted Living Facility Care
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Adult Day Care
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Homemaker Services
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Respite Care
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Hospice Care
What happens if I stay healthy and won’t need LTC benefits?
If you never need LTC benefits and decide to use your pension for retirement income then your existing accumulation value will be the value of your pension at the time you begin receiving your retirement income.
What happens if I end up needing LTC benefits?
If you should need LTC benefits then your pension accumulation value will triple in value to provide you up to 6 years of benefits. For example, if your pension had $100,000 accumulation value for retirement income it would automatically triple in value to $300,000 that can be used for LTC benefits.
When can I begin using my LTC benefits?
The date you will be eligible to receive LTC benefits is usually two years from the date your LTC Pension is issued. In addition, there is typically a 90 day elimination period that may need to be satisfied but this is most times cumulative and needs to be satisfied only once in your lifetime.
I understand that I have 6 years of LTC benefits but what if I only need 4 months of benefits?
A major plus is the ability to use LTC benefits only when necessary. For example, you may need only 4 months of a short term nursing home stay so when you leave the nursing home, the clock would stop with 5 years and 8 months of remaining LTC benefits to be used only when you might need to turn the clock on again and then off again and so on.
What if I already have private LTC insurance?
LTC pensions eliminate the need for LTC insurance policies. Most people do not purchase LTC insurance because it is expensive and similar to automobile insurance in the respect that if never needed then the premiums ended up going down the drain. LTC pensions will provide either a lifetime income stream or up to 6 years of LTC benefits. You will always receive the pension value in one way or another or if the pension is never used by the owner then a designated beneficiary will receive the pension value in a lump sum payment upon the pension owner’s death.
If you would like to see if a LTC Pension can be appropriate for you then please click here to find a local personal pension plan expert.
