It is always wise to have some sort of insurance coverage as an individual or a family. There are several insurance coverage packages which you can choose from to meet your health care needs. One of the many insurance coverages you can choose from is the long-term care insurance.
However, you do need alternatives that are more cost effective than long-term care insurance in the event that you can not afford to pay for the long-term care insurance coverage.
In tough economic times, or when budgets fall short, not every individual can afford to pay for long-term insurance coverage. That is when the following cost effective alternatives to long-term insurance can be purchased.
1. Long-term care annuities
These annuities are a combination of security of an annuity investment which has increased cash which qualify for long term care expenses for you.
Long-term care annuities also help in enhancing the returns on your investments and they do have lower underwriting restrictions compared to insurance coverage.
Another advantage of the annuities is that they are available to provide increased annuity income payments for individuals who are already being cared for.
2. Reverse mortgages
This is a special type of home loan that permits a homeowner to convert a certain percentage of their home equity into cash which they can use. In this type of mortgage, the Housing and Urban Development Department (HUD) offers a federally insured reverse mortgage to homeowners who are above the age of 62 years and are in under care.
3. Life insurance coverage
Most life insurance coverages are sold in combination of long term care benefits. In this type of insurance coverage, the death benefits are usually reduced by the long term care benefits which is paid out for care while the individual is still living.
4. Life settlements
This depends on your age, your health and insurance coverage benefits. Under this type of policy, you can sell your existing life insurance policy for a certain amount of cash which is more than the cash value, and then you can use the proceeds from the sale to fund for your long-term care needs.
It is also possible for you to sell off your life insurance policy even if it has no cash value attached to it. So you can choose from the above mentioned cost effective alternatives to long term care comfortably depending on your needs.