The following information should assist you in making a wise choice for the future. Good financial advice and planning may be all that is necessary for some individuals. Younger people may be able to save and invest in order to provide for care in their later lives. However, they should consider whether they can save enough for protracted care if it is needed. It would be wise to consult an accountant or an estate planner when deciding on this option.
Annuities are another way to plan for long term care.
Deferred or immediate annuities are sold by most life insurance companies. Annuities are insurance contracts that pay interest on the premium you pay the insurance company. You pay one large premium up front, and the annuity begins periodic payments immediately or later, according to your choice. Immediate annuities provide for periodic payments for a certain number of years or until a specified event, such as your death. With deferred annuities, your funds accumulate tax free until a specified event, such as retirement or the need for long-term care.