Is single-premium long-term care insurance worth it?

If you are in the market long term care insuranceyou may find that there are several options to choose from, both in terms of coverage and how you pay for coverage.

With most long-term care insurance policies, you pay your premiums every month. And, if you stop paying those premiums, you could lose your coverage.

But a lesser-known option is called single-premium long-term care insurance, which only requires you to pay a premium to secure coverage. It is a unique premium long term care insurance is worth it, But? Here's what the experts say.

Compare your long-term care insurance options with an expert now.

Is single premium long-term care insurance worth it?

Whether or not single premium long-term care insurance is worth it depends largely on whether or not you can afford to pay a high single premium. the benefits of the policy align with what you want from your coverage. Before making any decisions, however, it's also important to make sure you understand what this type of coverage is and how it works.

What is Single Premium Long Term Care Insurance?

“A single-premium long-term care policy is exactly what it's all about,” says Mickey Batsell, CLTC, trainer for Long-Term Care Certification, an educational company that offers certifications for insurance agents. 'long-term care. “Only a premium is required.”

“A single premium long-term care insurance plan is typically a life insurance policy or an annuity that can be funded with qualified or non-qualified funds,” says Patrick Simasco, elder law attorney and advisor financier of Simasko Law. “Once purchased, no further premiums will be paid.”

With traditional long-term care insurance, you can lose your benefits if you don't keep up with your premiums. But with single premium long-term care insurance, you can count on your coverage even if you face financial problems in the future. After all, you pay your premiums upfront, so there's no chance of missing a monthly payment.

However, this is not the only benefit of this type of policy. This type of policy can also save you money in certain cases.

Talk to an expert about single premium long-term care insurance today.

How does single premium long-term care insurance save you money?

Single premium long term care insurance can be produced Cost savings because it can offer you more benefits for less money.

“You get a better profit when you front-load [your long-term care insurance] and make a single premium,” says Keith Bercun, regional director of sales for OneAmerica Financial Partners, a financial services firm. “For the same premium dollar, you're going to get better benefits. So, for example, if you get $100,000, you'll get a bigger death benefit and a bigger long-term care benefit than if you paid $10.00 a year for 10 years.

However, if you don't have the money to finance a single premium long-term care insurance policy, you may be able to extend your coverage or get better benefits with a hybrid salary structure

“Some companies offer you a hybrid financing solution, where you can pay off part of the policy and make a recurring premium on the other part, and that can really amplify the benefits,” says Bercun. “Like with OneAmerica Financial Partners, instead of getting $100,000 one time, you could go up to $60,000 and a small annual premium of $3,000 a year.”

In turn, hybrid options can be more affordable up front compared to a single premium option and can save you money over time compared to traditional long-term care insurance with monthly premiums.

The bottom line

Single premium long-term care insurance may be worth it if you have the money to finance the policy with a single payment. However, if you don't, you still have the option of considering a policy with one of the other financing options. For example, you can go the traditional monthly premium route or opt for a hybrid between single premium and monthly premium financing options. Learn more about your options by chatting with a long-term care insurance professional now.