The need for long-term care is more likely the older a person becomes. But this type of care is often expensive. That’s why most people look for more affordable options. One possible option is a type of life insurance that combines life insurance and long-term care coverage.
The combination policy is permanent life insurance with a provision for long-term care. It’s perfect for people who need both types of coverage. The benefit is that instead of paying for two separate policies, coverage is rolled into one policy.
The policyholder can withdraw funds from the life insurance portion of the policy to pay for long-term care. When funds are no longer available, the insurer pays for care. It’s possible that the policyholder might die without ever needing long-term care. If that occurs, then the beneficiary receives the full death benefit.
It’s generally necessary to buy a hybrid policy before buying a traditional life insurance policy. You probably won’t be able to add a long-term care rider to a traditional life insurance policy.
All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Approval for coverage under the policy and attached LTC riders is subject to underwriting and may require a medical exam. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.