Life Insurance With Long Term Care Benefits
– Asset-based insurance, the alternative to long term care insurance.
There a millions of Americans entering into Medicare-age every year.
Many think that health insurance or Medicare pays for long term care, it doesn't.
Although there are different types of life insurance we are focusing on linked-benefit life insurance that can be used for long term care.
What are your options?
Your options depend on your health, age, and financial goals. If you want to insure for the risk then you must be healthy enough to qualify for insurance and be able to afford it.
If you are not going to insure and you plan to pay for care out of pocket then you will need $30,000-$100,000 or more per person per year to cover the cost of care. The cost of care depends on the type of care needed and where the care is provided.
Predicting your future.
Your future will happen whether you plan for it or not. By waiting to decide, you are deciding to wait. If your health changes you may not be insurable. Of those applying for insurance ages 60-69 25% are declined coverage because of health, 44% ages 70-79 are declined. The younger you are when you buy insurance the cheaper it is and more likely you will health-qualify.
According to the Alzheimer's Association 1 in 3 will die from Alzheimer's or another form of dementia. Alzheimer's is expected to become the leading cause of death in the future, having increased more than forty-six percent between the years 2000 and 2006. Do you really think you are going to beat the odds? If it's not Alzheimer's, it can be 1,000 other health problems.
If you think that you will not need long term care when you are old and frail then consider that you will still be leaving a legacy with the life insurance. Life insurance benefits the living.
You don't buy insurance planning to use it tomorrow.
The average age of purchasers of this insurance has dropped because many have seen their grandparents, parents, sometimes their spouses or friends needing care and they see the effect it has on family and finances.
Protecting your future.
What do you want to have happen with your estate? Most reply they want it to go to their children, grandchildren, or a charity. Your children's and grand-children's future will be effected by the cost of your long term care.
Jonathan Pond, award winning financial advisor claims that 90% of estates go in this order:
1. Nursing home
Term Life vs Universal or Whole Life
Most people buy a term life policy as kind of a mortgage protection in case something happens to them during their earning years.
The fact is that with term life, 99% of term policies are never used, the term often ends before the person dies.
A better way to go would be a universal or whole life policy. Whole life is more expensive than universal because whole life is guaranteed and has a larger cash accumulation.
Term life has no cash value and if you want to renew it at the end of the term, the premium will be high because you are older. We provide clients with universal and whole life policies including those that also pay for long term care.
Is life insurance with a LTC rider better than LTC insurance?
Life insurance with long term care benefits also called asset-based insurance or linked-benefit insurance provides protection for the premium dollars you pay that traditional long term care insurance does not provide. Plus with Life/LTC your premiums will never increase.
The only insurance guaranteed to pay is life insurance, it's the only event guaranteed to happen.
With a Life/LTC policy the premiums you pay will go towards a policy that you can use for long term care and if you do not need care, or only need some care, the policy will pay a tax-free death benefit to your beneficiaries. If you have traditional LTC insurance you will lose the premiums paid if you don't use the policy.
We represent the major companies with the best Life/LTC policies: State Life/One America, Lincoln Financial, Nationwide, Securian, John Hancock, Protective, PennMutual and others.
Next: All About Life/LTC