Looking for affordable in-home care for a parent or loved one?
What Is
Reverse Care Insurance?
- RCi is a first-of-its-kind funding solution for in-home care. It is the best solution when compared to Long Term Care Insurance and the Reverse Mortgage.
- Think of it as a way of financing the care you need today without encumbering your assets.
RCi is a first-of-its-kind funding solution for in-home care. It is positioned right in the middle of the two predominant forms of paying for in-home care – Long-Term Care Insurance and the Reverse Mortgage. Think of it as a way of financing the care you need today without encumbering your assets. Even if you qualify for a Reverse Mortgage it is often difficult to know if the cash flow from the transaction will be sufficient to cover your care needs into the future. With RCi you don’t have to deplete the equity in your home and you have the flexibility to increase care as needed. Because RCi is structured as a loan product, it also works for those who aren’t homeowners or who don’t qualify for a Reverse Mortgage.
By the time most seniors and their families start thinking about in-home care they are most likely not eligible for Long-Term Care Insurance. Even if they were, the long term care coverage varies widely between policies and is often difficult to collect on.
Long term care insurance is exactly what it says it is, an insurance policy to pay for long term care and like most insurance policies it is based on a use it or lose it system. A reverse care policy is actually a loan product that functions similarly to an insurance policy but is not based on a use it or lose it structure. Because a reverse care policy is purchased with an associated loan there is a cash asset value tied to each policy. Cash value is retained in the policy until it has been fully exhausted in the payment of care. If care ends early, for any reason, or if the policy has a remaining balance of care hours, that balance is 100% refundable.
For starters, long term care insurance is typically something you purchase years before the need for care – sometimes 20 or 30 years in advance. Whereas, a reverse care policy is something you purchase today based on the current needs of your situation. When you buy long term care insurance, you select coverage options that you think you might need, but you really never know what lies ahead and that often leaves you wondering if you purchased enough (or too much) coverage years in advance. With a reverse care policy, you don’t get stuck paying decades worth of premiums for a policy that might not be ideal, you get to create a policy that best addresses today’s needs and pay for it in the future. Also, with a reverse care policy you can add additional coverage at any time and any unused care hours are fully refundable.
- You don’t have to apply and pay for it years in advance.
- There are no disqualifications based on health condition.
- Get the exact level of care you need today and pay for it up to five years into the future.
- You’re not left wondering whether you bought enough, too little, or too much insurance; with RCi you buy only the coverage you need.
- 100% refundable balance. Unlike insurance, which is a “use it or lose it” system, reverse care insurance creates a policy based on today’s care needs.
- Adjustable coverage – start with one level of coverage and increase if needed.
- FamilyShare™ allows multiple family members to each contribute to the care of a loved one at a level they can individually afford.
- No Prepayment penalties EVER.
Disadvantages of
Long-Term Care Insurance:
- Expensive
- Coverage gaps and numerous exclusions
- Possibility of premium increases in some plans
- Must pay higher premiums or lose the money already spent
By the time most seniors and their families start thinking about in-home care they are most likely not eligible for Long-Term Care Insurance. And even if they were, the long-term care coverage varies widely between policies and is often difficult to collect on.
Advantages of
Reverse Care Insurance:
- Affordable
- Only pay for the care you need
- Flexible and adaptable - add or reduce care as needed
- Fast approval
Because Reverse Care Insurance is NOT an insurance product it puts you and your loved ones in complete control of your care. You get to choose who provides the in-home care and you get to determine how much care is needed. RCi is superior to Long-Term Care Insurance, because you only pay for what you need and you’re in control of the entire process. Also, you never have to deal with insurance adjusters trying to challenge your level of needed care every step of the way.
RCi is the only solution between Long-Term Care Insurance and Reverse Mortgages and it is the superior choice by far. Why? Because Long-Term Care Insurance has a track record of dodgy coverages, in fact there is an entire sub-industry that employs attorneys and insurance consultants just to help seniors collect policy coverages they’re owed! And no one wants a reverse mortgage – why deplete hard earned equity for a fixed disbursement of funds that may or may not even cover the actual costs of care? People choose RCi because it preserves cash flow and allows families the financial flexibility to increase care as needed.
Disadvantages of
Reverse Mortgage:
- Loss of equity value
- Various and on-going fees and servicing expenses
- Variable and unpredictable interest rates
- Potential impact on Medicaid benefits eligibility
Even if you qualify for a Reverse Mortgage it is often difficult to know if the cash flow from the transaction will be sufficient to cover your care needs into the future. With RCi you don’t have to deplete the equity in your home and you have the flexibility to increase care as needed. Because RCi is structured as a loan product, it also works for those who aren’t homeowners or who don’t qualify for a reverse mortgage.
90% of Seniors
Want to remain in their home
In-Home care has become a necessary part of growing old. Nearly 90% of seniors want to remain in their home through the entire aging process. Unfortunately in-home care is expensive and not typically covered by insurance or Medicare.
AARP Press Room
May 14th, 2020
Study from NAC and AARP found:
- of unpaid family caregivers are emotionally stressed
- of unpaid family caregivers experienced financial troubles
- of unpaid family caregivers are physically strained
- of unpaid family caregivers experienced depression
(twice the national average)
RCi offers a solution for Caregiver Fatigue by providing an affordable way to fund the care your loved one requires. Whether you need around-the-clock care or just a few hours a week RCi can tailor the perfect solution to help you and your family through these difficult times.
- Reduces the impact on the family budget
- Is quick and easy to apply for
- Provides flexibility of care
How it Works
RCi makes it easy
RCi makes it easy to get the care you need today with one simple monthly payment.
- Work directly with your Home Care Agency to determine how many hours of care are needed (up to one full year).
- Apply for RCi approval.
- Once approved, your care starts right away.
RCi makes it easy to pay for the care you need today!
Why Use
Reverse Care Insurance
Why it makes sense to use Reverse Care Insurance:
- Provides the financial flexibility to increase care as needed. In-home care often tends to be the first step in the aging process and you don’t know what lies ahead. By using RCi, families can cautiously approach care by conserving cash today to allow for the likely to increase costs ahead.
- Reduces the impact on the family budget.
- FamilyShare™, our proprietary program, allows multiple family members to share in the cost of care based on their personal budget.
- EstatePay™, this policy feature allows the estate to pay off any part or all of the loans with ZERO prepayment penalties.
- Qualified medical expenses like those offered through an RCi policy may be Individually tax deductible (consult your tax professional).
What is FamilyShare™:
FamilyShare™ is our proprietary program designed to allow multiple family members to pay for a care policy at a level they can each individually afford. So often we find that one family member takes on most of the responsibility of managing and paying for the care of a loved one. With FamilyShare™ we have created a system where nearly every adult family member can contribute financially at a level they can afford.
What is EstatePay™: