Long Term Care Insurance Using A Life Insurance Policy

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long term care using a life insurance policy

Life insurance is one of the most important purchases that you’ll ever make for your loved ones. If something tragic were to happen to you, your family could be left with a massive amount of debt and other final expenses, but that’s where I life insurance policy comes in. It will give your family the money that they need to get through the difficult time, without being stranded with a mountain of debt.

If you recognize the need to purchase life insurance to protect your family, but you also feel it’s important to protect your independence and your assets while you’re alive – you should consider linking your life insurance with long term care benefits.

Standalone long term care policies are becoming increasingly unaffordable.  Rates continue to rise and we’re seeing a trend of insurers discontinuing their standalone long term care plans. 

HOWEVER, some life insurance companies have combined life insurance and long term care into one “linked” product.  This makes having long term coverage VERY affordable.

If you want to get affordable long-term care, it’s a much better option to get a rider instead of buying a standalone plan. Buying additional coverage on a plan that you already own is going to help you save hundreds of dollars on your insurance coverage.

We know that finding the perfect life insurance and riders can be a difficult process, but it’s important that you have all of the insurance coverage that your family will need, regardless of what life throws at you.

Here are some of the benefits of using one of these linked life insurance and long term care policies:

Your life insurance death benefit is also available for long term care expenses. While your passing could leave your family with a massive amount of debt, paying for any long-term care services could be just as financially straining. Having the ability to tap into your life insurance policy when you need it is a key advantage that you should consider having.

You can use all, some or none of the death benefit for long term care.  The benefit not used for long term care expenses, will be paid to your heirs. 

You WILL use the benefits
Regardless of what happens in your life, this policy will pay out.  When paying for a standalone long term care policy, you run the risk of not using the policy. 

long term care using life insuranceThere are several carriers on the market who provide these long term care options with their life insurance: John Hancock, Lincoln and Hartford are a few, but one carrier stands out from the rest: Nationwide.  

Hands down, Nationwide has the best long term care rider and rates.  Comparing all these companies will take a whole other article.  We have nothing against the other carriers, in fact we offer all of them – but Nationwide has separated themselves from the pack.  Click here for an in depth look at this rider.

How Much Coverage Do You Need?

While you can add additional riders to life insurance, it’s important that you focus on the original goal of your plan, to protect your family against financial suffering if you were to pass away.

When you’re shopping for life insurance coverage, it’s important that you get the perfect protection for your family. Not having the right type of coverage or enough life insurance is one of the biggest mistakes that you could make for your loved ones. It’s vital that you get the perfect amount of coverage, and there are several different categories that you should account for when determining how much coverage to buy.

The first thing that you should look at is your debts and final expenses that your family would be responsible for if something tragic were to happen to you. The primary goal of life insurance is to give your family the money that they need to pay off your major expenses, like mortgage, student loans, or business loans. Before you apply for coverage, calculate all of your outstanding debts, and make sure that you buy a plan that is large enough to cover all of those bills.

The next number that you should look at is your annual income. If something were to happen to you, and you’re one of the main income-earners in your home, your family would struggle to pay for any necessary expenses, but that’s where life insurance comes in. Your life insurance can give your family the money that they need to replace your paycheck.

Because you’re looking to get long-term care, you’ll also need to consider the cost of any extended care services that you may need. The costs could be anywhere across the board, and it’s impossible to accurately calculate exactly how much you will need for long-term care, but it’s important that you account for those expenses when you’re getting a long-term rider and a life insurance plan.

Working With An Independent Agent For Long Term Care

One of the best ways to get affordable life insurance and a long term care rider is to work with an independent insurance agent. Unlike a traditional agent, independent agents work with dozens of highly rated companies across the nation. Every insurance company is different, and they all have various medical underwriting and rating systems that they are going to use to calculate your premiums. If you want to get the cheapest coverage, you’ll need to compare dozens of plans before you decide which one is going to work best for you.

Instead of wasting your time calling all of those companies yourself, let one of our independent insurance agents do all of the hard work for you. We work with some of the best insurance companies across the nation, and we know which companies are going to give you the best rated based on your specific situation.

We know that buying life insurance and long term care insurance is not a fun experience. Nobody wants to think about something tragic happening to them, but not planning for the inevitable is one of the worst mistakes that you can do for your loved ones. If something were to happen to you, and you didn’t have life insurance coverage, not only would they experience emotional pain, but they would also have tons of financial stress as well.

You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the insurance protection that your family will need. If you have any questions about life insurance and long term care protection, please contact one of our experienced agents today. We would be happy to answer those questions and connect you with the best plan to meet your needs.

For more information about linking your life insurance with long term care, quotes or to request brochures, please don’t hesitate to contact us.  You’ll find that when it comes to educating our clients, we take the time to make sure you understand everything!

Long-term care insurance riders are only one of the additional covers that you can attach to your life insurance plan. There are dozens of different riders that you can add, like child protection, and each company is going to have different supplemental coverage plans that you can buy. Not only can our independent insurance agents help you find the lowest insurance rates, but they can also help you decide what kind of protection that you’ll need.

Our agents have years of experience working with all kinds of applicants and we can walk you through the process of deciding which coverage to buy. Life insurance is the most important investment that you’ll ever make for your family, let us help you ensure that you’re making the best choice.

Perhaps you’re concerned because of a health condition such as someone needing diabetics life insurance or other health conditions. If so, we can help.

About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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1 Comment

Jeff, Thanks for the informative post. you are correct that standalone LTC insurance policies are becoming more expensive, and for some purchasers a hybrid long term care/life insurance policy might make sense. There is a difference, however, between a linked benefit life insurance policy that significantly enhances the total benefits if long term care is needed, and a life insurance policy that simply accelerates the death benefit prematurely if the insured is care-dependent.

Jack Lenenberg, J.D.

November 29, 2011 at 12:10 pm
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