Using Life Insurance to Solve for Long Term Care
What if your life insurance policy could take care of a long term care scenario? Today, with newer products this is possible. Several carriers now offer either multi-pay or single pay life insurance policies that have long term care riders attached. It’s a great way to protect yourself in case of a loss, but also protect yourself if you end up needing long term care.
There are several carriers that now offer universal life policies that have long term care riders attached to them. The base policies function just like a universal life contract, and the long term care riders are similar to traditional plans. The attraction to these plans is the 100% return of premium. So for example, let’s say you give the insurance company $10,000 in premium over 10 years. By the eleventh year you’ve paid in $100,000. At any given time after that eleventh year you can get your $100,000 back. So in essence, you’ve been controlling your asset the whole time.
This return of premium feature is probably the biggest plus side to owning one of these policies. Also, you’re covering two risks in one shot. If you pass away and never need a day of long term care, then your beneficiaries or estate are getting the death benefit. If you end up needing long term care then the policy will have a benefit that will pay out in that scenario.
You might question if these policies are less expensive than straight long term care policies? The answer is no. If you think about it, you’re getting two types of coverage in one contract, so typically these policies are double the price. But this is logical since you’re getting two insurances in once contract.
So if you’re the type of person who doesn’t like the idea of the traditional long term care approach, keep in mind there are new policies that have some flexibility in solving for both a death benefit and a long term care scenario. Take the time to investigate these contracts as they just might turn out to be the right fit for you!
About the author: Mark Yurkovic has been in the life insurance business for over 12 years, and holds CLTC, LUTCF, and CES designations. He enjoys building remote control boats, and playing instruments including the piano, guitar, banjo, and mandolin. Mark would love to discuss life insurance options and work towards finding the best policy fit for your family. You can contact Mark at 1-800-651-1953 or MYurkovic@Pivot.com