We have discussed the merits of Long-Term Care and Chronic Illness Riders in this forum on more than one occasion, always in an effort to understand the nuances that differentiate one offering from another. The hope, of course, is that there is a clear winner.
The reality, unfortunately, is much more complicated.
Consider some of the elements that we have discussed previously:
> The potential challenges presented by the need for any claims under a chronic or critical illness rider to be based on a “permanent” impairment
> The specter of future premium increases in traditional Long-Term Care insurance policies
> The challenge presented by asset-based, single pay contracts that may be out of reach for some clients without significant liquid assets
> The uncertainty at claim time based on mortality discount factors that accompany some chronic and critical illness contracts
There is no one solution without a chink in its armor.