More often than not, couples considering buying Long-Term Care (LTC) insurance have a number of concerns. At the top of the list: what happens to the premiums you’ve paid if one or both spouses never use the coverage? For federal workers who have purchased a policy from the Federal Long Term Care Insurance Program (FLTCIP) the premiums you’ve paid for you and your spouse are gone forever. However, LTC policies offered by many private sector insurance companies provide a viable solution: Shared Care or Shared Benefits for couples.
How Long-Term Care For Couples Works
Shared Care is an add-on to your LTC policy that allows you to pool your coverage with your spouse’s. If one spouse uses up all of their benefits, they have the ability to access their partner’s unused coverage. This enables couples to get the most out of their LTC policies by combining benefits.
“Keep in mind that a Shared Care rider covers everything that the individual LTC policies cover.”
You Can Purchase Shared Care As A Policy Rider
Shared Care is usually offered as a rider to a LTC policy. Both you and your spouse must purchase an individual LTC policy and then add on a Shared Care rider that links your policies together. As a result, one spouse can use any unused benefits from the other. Other types of riders include inflation protection and death benefits for survivors. Keep in mind that a Shared Care rider covers everything that the individual LTC policies cover.
Some insurance companies offer another type of LTC insurance for couples: Shared Benefit. With this type of coverage, there’s a third “shared” pool of benefits that either spouse can access once they use up their coverage. Typically, insurers will offer either the Shared Care rider or the Shared Benefit rider but not both.
Is Shared Care Worth It?
According to LongTermCare.gov, a person reaching their 65th birthday today has a near 70% chance of needing some type of long-term care services and support in the future. And though one-third of today’s 65-year-olds may never need LTC, 20% will need it for five years or longer. When you consider that LTC in a facility can cost as much as $10,000 per month, adding a Shared Care or Shared Benefit rider is well worth the cost.
LTC Insurance Protects Your Financial Security In Retirement
With the cost of custodial care services on the rise, a years-long stay in a nursing home could potentially wipe out your TSP and other retirement savings. To learn more, talk to an FRC® trained advisor about LTC insurance for you and your spouse.
