The use of insurance policies for long-term health care is falling in Texas and elsewhere, a recent report notes. In fact, only a handful of companies have continued to sell such policies. Now, people in our state and elsewhere are considering how to plan for their long-term care needs as a part of their estate planning effort.
In the 1980s and 90s, people in Texas purchased long-term care insurance policies that were intended to help pay for medical costs. These policies were popular, though now they have become limited due to rising premium costs. In addition, companies stopped selling the insurance plans when they discovered them to be unprofitable. Current information suggest that there are only five companies continuing to sell these insurance plans.
Now, some individuals are purchasing riders to their life insurance policies to plan for any long-term care issues that could crop up, a report asserts. However, others are using estate planning tools such as trusts to help plan for their long-term care needs. This type of estate planning can include having the trust take ownership of some assets, including real property.
Estate planning has many variables for people in Texas. This can be both good news and somewhat confusing for some. Because of this, it is often a wise idea for individuals to seek information about the process and its available tools. This effort can pay off when people are able to feel comfort in the knowledge that they have planned for the end of their life and the care of their heirs and beneficiaries when they die.
Source: The Press Democrat, Fewer Americans buying long-term care insurance, Robert Digitale, Dec. 8, 2013