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Long-term care planning without the use-it-or-lose-it gamble.

Asset-based long-term care puts your money to work either way. It may help pay for care if you need it, and leave a death benefit to your heirs if you don't.

~70%May Need Care After 65 (HHS)
2 In 1Care Benefits Or Death Benefit
MultipleCarriers Compared
Since 1990Serving Ohio
An older couple smiling together at home
The Plain-English Version

Medicare generally doesn't pay for long-term custodial care, the everyday help with bathing, dressing and eating that most long-term care actually is. The U.S. Department of Health and Human Services estimates that someone turning 65 today has almost a 70% chance of needing some type of long-term care services. Asset-based (hybrid) long-term care is life insurance or an annuity with long-term care benefits built in or added by rider. It is often funded with a single premium or a limited number of payments. If you need care, the policy may help pay for it. If you never do, a death benefit goes to your heirs. Existing life insurance or annuity values may be moved through a 1035 exchange into some combination policies; talk with a tax professional first. eGoodwin Insurance, an independent agency in Marion and Powell serving Ohio since 1990, compares several carriers for you at (740) 387-8335.

What it is
Life insurance or an annuity with LTC benefits
If care isn't needed
A death benefit goes to heirs
How it's funded
Often single premium or limited pay
Call first
(740) 387-8335
Why Long-Term Care Planning Matters

The care most people need isn't what Medicare pays for. That gap lands on savings.

When people picture long-term care, they often picture a hospital. Most long-term care is something else: help at home, in assisted living or in a nursing home with the basics of daily life, sometimes for years. That kind of help is called custodial care, and Medicare generally doesn't pay for it.

It is also more common than most people expect. The U.S. Department of Health and Human Services estimates that someone turning 65 today has almost a 70% chance of needing some type of long-term care services. Some will need a little help for a short time. Others will need a lot, for a long time. Nobody knows in advance which group they will be in.

Without a plan, the bill usually comes out of savings, retirement accounts or the house. It often lands on a spouse or adult children too, in time and stress as well as money. Planning ahead is about deciding now how that would be paid for, while you still have the most choices.

For a lot of families, the hang-up with traditional long-term care insurance is simple. You pay premiums for years, those premiums can rise, and if you never need care, the money is gone. Asset-based long-term care was built for people who want the protection without that gamble. It is a coverage we feature at eGoodwin Insurance, and one we spend a lot of time explaining carefully.

How asset-based long-term care works. Two main types, a few ways to pay.

Hybrid policies combine long-term care benefits with life insurance or an annuity. The exact benefits, limits and options depend on the policy and the carrier.

Most common
Life-Based

Life Insurance With LTC

A life insurance policy with long-term care benefits built in or added by rider. If you need qualifying care, the policy may pay benefits toward it. If you don't, the death benefit goes to your heirs.

For savers
Annuity-Based

Annuity With LTC

An annuity with long-term care benefits attached. It can be a way to give money you have set aside a second job: helping pay for care if it is needed. How benefits are calculated depends on the contract.

Funding option
Single Pay

One Premium

Many hybrid policies are funded with a single premium. You pay once, often by repositioning savings you already have earmarked for the future, and the premium question is settled.

Funding option
Limited Pay

A Set Number Of Payments

Some policies let you spread the cost over a limited number of years instead of paying for life. It can make the plan easier on cash flow while still reaching a paid-up date.

If care isn't needed
Death Benefit

Money To Your Heirs

If you never need the long-term care benefits, a death benefit goes to your beneficiaries. How care benefits and the death benefit work together depends on the policy.

Hybrid vs. traditional long-term care. Side by side.

Both can make sense. Here is how they generally differ. Specific policies vary, so we compare real quotes before you decide.

Hybrid
Premiums

Often Paid Once Or Over A Few Years

Many hybrid policies use a single premium or limited payments, so you know what the coverage costs up front.

Hybrid
No Care Needed

A Death Benefit Goes To Heirs

If you never need care, the money doesn't simply disappear. Your beneficiaries receive a death benefit.

Hybrid
Funding

Can Reposition Existing Assets

Savings, or in some cases an older life policy or annuity through a 1035 exchange, may fund it. Ask your tax professional first.

Traditional
Premiums

Ongoing, And Can Rise

Traditional policies usually charge ongoing premiums, and those premiums can rise over time.

Traditional
No Care Needed

Use It Or Lose It

If you never need care, the premiums you paid are generally gone. That is the trade-off many families don't love.

Traditional
Focus

Care Benefits Only

Traditional coverage is built only for care. For some budgets and goals, that focus can still be the right fit, and we will tell you if it is.

See what it could look like for you.

Tell us your age, what you have set aside and what matters most: care, legacy or both. We will compare several carriers and walk you through the options in plain English. Free, with no obligation.

Getting It Right

Four things worth knowing before you buy.

None of this is complicated once it is laid out. These are the details that shape which policy fits.

1. Funding it with what you already have: the 1035 exchange

Many people already own an older life insurance policy or an annuity they bought years ago for a different purpose. Under the Pension Protection Act, existing life insurance or annuity values may be moved into some long-term care combination policies through a 1035 exchange. Whether that makes sense depends on the old contract, the new one and your tax picture. Please consult a tax professional before making any exchange. We will gather the policy details so that conversation is easy.

2. The Ohio Long-Term Care Partnership Program

Ohio has a Long-Term Care Partnership Program. It can help protect assets if you later need to qualify for Medicaid. Partnership status depends on the specific policy, and not every long-term care policy qualifies. Ask us whether a policy is Partnership-qualified before you buy, and talk with an elder law attorney about Medicaid planning.

3. Underwriting: why timing matters

Long-term care benefits are underwritten. Carriers look at your health history and age when you apply, and each one weighs things a little differently. Coverage is generally easier to qualify for while you are healthy, which is why many people start looking somewhere between about 45 and 75. We help you understand what underwriting will ask, and we steer you toward carriers that may look more favorably at your situation.

4. How we help: comparing several carriers

Hybrid policies vary a lot from one company to the next: how benefits are paid, how long they last and what underwriting asks. As an independent agency, we represent multiple insurance companies. We compare several carriers, lay the options side by side and explain the trade-offs in plain English. Then we stay with you as your needs change. We work for you, not an insurance company.

This page is general information, not tax or legal advice. eGoodwin Insurance does not provide tax or legal advice. Talk with your tax professional and attorney about your situation. Benefits, features and availability depend on the policy and are subject to underwriting approval.

Have an old life policy or annuity in a drawer?

Bring it in. We will look at what it is doing for you today and whether a long-term care combination policy may be worth discussing with your tax professional.

Who it tends to fit. And why.

Asset-based long-term care isn't for everyone. Here is where it most often makes sense for Ohio families and business owners.

Not sure whether it fits?

That is exactly what the first conversation is for. No pressure, no obligation, and you will leave understanding your options, including when a hybrid isn't the right answer.

Long-term care planning in Ohio. And across all of Ohio.

This is a conversation that goes better face to face. Meet us at our Marion office on E. Church Street or our Powell office on E. Olentangy Street. Bring your spouse, your adult children or anyone who should be part of the decision.

Long-term care questions. Straight answers.

What is asset-based long-term care insurance?

It is life insurance or an annuity with long-term care benefits built in or added by rider. People also call it hybrid or combination long-term care.

If you need care, the policy may pay long-term care benefits. If you never need care, a death benefit goes to your heirs. The details, including how benefits are paid, depend on the policy.

Doesn't Medicare pay for long-term care?

Generally, no. Medicare generally doesn't pay for long-term custodial care, the day-to-day help with things like bathing, dressing and eating that most long-term care actually is.

That gap is why long-term care planning matters, and why so many families end up paying for care out of savings.

How likely am I to need long-term care?

More likely than most people think. The U.S. Department of Health and Human Services estimates that someone turning 65 today has almost a 70% chance of needing some type of long-term care services.

Not everyone will need long or expensive care. The point of planning is that nobody knows in advance which group they will be in.

How is hybrid long-term care different from traditional long-term care insurance?

Traditional long-term care insurance is "use it or lose it." If you never need care, the premiums are gone, and premiums can rise over time.

Asset-based coverage is often funded with a single premium or a limited number of payments. If care is never needed, a death benefit goes to your heirs. Each approach has trade-offs, and we will walk through both.

How do I pay for an asset-based policy?

Often with a single premium or a limited number of payments, such as over several years, depending on the policy.

Many people reposition money they have set aside, such as savings or the value of an older life insurance policy or annuity. We will show you a few ways to fund it so you can compare.

Can I use an old life insurance policy or annuity?

Possibly. Under the Pension Protection Act, existing life insurance or annuity values may be moved into some long-term care combination policies through a 1035 exchange.

Whether it makes sense depends on the old policy, the new one and your tax situation. Please consult a tax professional before making an exchange.

What happens if I never need long-term care?

With asset-based coverage, a death benefit generally goes to your heirs.

That is the main reason people choose this approach over traditional coverage: the money is not simply gone if care is never needed.

Is a hybrid policy part of the Ohio Long-Term Care Partnership Program?

It depends on the specific policy. Ohio has a Long-Term Care Partnership Program that can help protect assets if you later need to qualify for Medicaid.

Partnership status depends on the policy itself, so ask us whether a policy you are considering is Partnership-qualified before you buy.

What is the best age to look at long-term care coverage?

Many people look at it somewhere between about 45 and 75. Earlier is often better, because coverage is underwritten on your health and age when you apply.

Waiting until a health change can make coverage harder to get or more expensive. A conversation costs nothing, even if you decide to wait.

Do I have to qualify medically?

Usually, yes. Long-term care benefits are underwritten, and each carrier looks at health history a little differently.

That is one reason to work with an independent agent. We can help you understand what underwriting will ask and point you toward carriers that may be a better fit for your health history.

Should couples plan for long-term care together?

Usually, yes. Care for one spouse can draw down the savings the other spouse will live on.

Carriers handle couples differently, depending on the policy. If you are married, we will compare options for both of you side by side.

Is this tax or legal advice?

No. We are licensed insurance professionals, not tax advisors or attorneys.

We can explain how the coverage works and compare policies. For tax questions, 1035 exchanges, Medicaid planning or estate documents, please talk with your tax professional and attorney.

Still have questions? Call (740) 387-8335. We will give you a straight answer.

Plan for care on your terms.
Without betting your savings on a guess.

Tell us what you have set aside and what matters most. We will compare several carriers and explain your options in plain English, with no pressure either way.