Shared Care Riders in LTC
For couples buying long-term care insurance, a Shared Care rider lets each spouse/partner access the other’s pool of benefits if their own runs out. It’s one of the most popular ways to add flexibility without paying for two oversized policies. At Diversified Insurance Brokers, we compare traditional and hybrid LTC plans from 75+ carriers and show exactly how Shared Care affects cost, benefits, and eligibility.
See Your Shared Care Options
We’ll show side-by-side quotes with and without Shared Care, inflation, and return-of-premium options.
What Is a Shared Care Rider?
With Shared Care, two individual LTC policies are linked so each insured can tap into the partner’s remaining benefits after using up their own. Some contracts also add a third shared pool that either spouse can use, creating more total coverage for the household.
How Shared Care Works (Typical Designs)
- Linked benefit pools: Each spouse starts with their own monthly and total benefit. When one person exhausts theirs, they can draw from the other’s unused pool (with the partner’s consent where required).
- Third pool (optional): Certain policies add a joint pool (e.g., another 2–3 years) available to either spouse.
- Survivorship options: Some plans keep coverage in force for the surviving spouse without new underwriting.
- Inflation alignment: Riders usually require matching inflation options for both spouses.
Who Should Consider Shared Care?
- Couples who want flexibility because LTC needs are unpredictable.
- Households trying to balance budget and protection without over-buying two large policies.
- Pairs with uneven health risks, family history, or age gaps.
Pros & Considerations
- Pros: Flexible access to more years of coverage; helps if one spouse needs extended care; can reduce over-insuring both policies; may include survivorship benefits.
- Considerations: Added rider cost; one spouse’s heavy usage can reduce the other’s protection; both applicants must usually qualify medically; inflation options often must match.
Cost Impact
Adding Shared Care increases premiums versus two stand-alone policies without the rider. The percentage varies by carrier, benefit periods, ages, and inflation selection. We’ll quote both ways so you can see the trade-offs clearly.
Example (Illustrative)
Each spouse: $6,000 monthly benefit, 3-year benefit period, 3% compound inflation. With Shared Care, if Spouse A uses 3.5 years of benefits, they can access Spouse B’s remaining pool (subject to contract rules), potentially extending coverage to 4–6 total years for the household.
Traditional vs. Hybrid LTC with Shared Care
- Traditional LTC: Generally the most straightforward Shared Care designs and lower initial premium, but “use-it-or-lose-it.”
- Hybrid Life/LTC or Annuity/LTC: Premiums are higher, but provide cash value or death benefit if care isn’t needed; some hybrids support joint designs or shared benefit features.
Key Add-Ons to Evaluate Alongside Shared Care
- Inflation protection: 3% or 5% compound (or CPI-linked) to preserve buying power.
- Waiver of premium: Stops premiums during claim.
- Return of premium / survivorship: Refund features or premium-waiver at first death on some designs.
- Care coordination: Access to care managers and concierge claims support.
Compare Traditional vs. Hybrid LTC
We’ll price shared vs. non-shared designs, different inflation options, and survivorship features.
Tax & Partnership Notes
- Tax treatment: Premium deductibility and benefit taxation depend on product type and your situation. Coordinate with a tax advisor.
- State Partnership: Many traditional LTC policies are Partnership-eligible (asset disregard) when certain criteria, including inflation, are met. Shared Care availability and rules vary by state/carrier.
Talk with a Long-Term Care Specialist
We’ll tailor an LTC plan with Shared Care options that fits your goals and budget.
FAQs: Shared Care Riders in LTC
Do both spouses have to buy the same benefits to get Shared Care?
Most carriers require matching core features (benefit period and inflation) for Shared Care eligibility, though monthly benefit can differ. Exact rules vary by insurer.
Can one spouse use all of the other spouse’s benefits?
Potentially, yes—subject to the contract. Some designs require consent and/or leave a minimum reserve for the partner. Others include a third joint pool to draw from first.
What happens if one spouse passes away?
Policies differ. Some Shared Care riders allow the survivor to retain remaining combined benefits; others offer survivorship features that keep coverage in force with no further premiums.
Does Shared Care increase the premium a lot?
It does add cost, but often less than buying two much larger stand-alone policies. We’ll quote with and without Shared Care so you can compare value per dollar.
Is Shared Care available on hybrid life/LTC policies?
Some hybrids support joint designs or shared/pooled benefits, but structures differ from traditional LTC. We’ll show both styles if you want cash value or death-benefit features.
Do we still need inflation protection if we add Shared Care?
Yes. Shared Care adds flexibility, but inflation protection helps benefits keep pace with rising care costs. Carriers often require matching inflation across both policies.
Will Shared Care affect State Partnership eligibility?
Partnership rules are state-specific. Shared Care can be compatible when policy features meet state requirements (e.g., inflation). We’ll confirm eligibility for your state.
What if our health situations are very different?
Shared Care can help balance uneven risk by letting the higher-risk spouse access the partner’s unused benefits. Both applicants generally must qualify medically.
Disclaimer: Product availability, features, and tax treatment vary by carrier and state. This is educational—not tax or legal advice. Always review the actual contract and consult your advisors.
