Using Caregiver Contracts To Leverage Your LTC Sales

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A caregiver contract is when relatives are hired to take care of their disabled or aging family members. It is usually drafted by an attorney and specifies the caregiver’s duties and the length of contract (usually the elder’s lifetime). Caregiver payment can be made either in lump sums or installments.
 
How Does Long-Term Care Get Thrown Into The Mix?
 
Purchasing a Long-Term Care (LTC) policy is one way to pay the compensation promised in a caregiver agreement.
 
Please note: Many LTC Insurance policies do not allow a relative to be hired directly as a caregiver, it is important that the policy have a cash benefit.
 
Once an individual triggers benefits, the insurer pays out the cash benefit regardless of who the caregiver is. A full cash benefit will provide the same benefit.
 
It is important to discuss these planning options with current and prospective clients. An agent who knows about LTC planning as well as insurance may be seen as more knowledgeable about the options available.
 
To learn more about caregiver contracts and how to incorporate them into your sales, contact your LTC Specialist today.