Another Way To Get Long Term Care Insurance
So many Americans are worried about how healthcare reform will ultimately impact them
. As we age, the potential for long term care needs becomes more and more of a concern.
The biggest reason many people do not purchase long term care insurance is because they don't want to pay for it and never use it. However, just like every other insurance product, it is better to have it than to realize later that we actually would have benefited from it.
There are products available, though, that allow you access to long term care coverage if the need arises. These policies combine long term care insurance with other insurance products - life insurance or annuities. The long term care insurance can be added as a rider to the other insurance product being purchased.
There are a variety of ways to purchase these combination products. It depends on what makes the most sense for the policyholder. Here are a few variations to consider.
Some policies are only available with a single premium payment - one large lump-sum payment. Others will allow for multiple, flexible premium payments over time.
If there is a concern that the premiums will "go to waste" if the policyowner never needs care, some insurance carriers still offer the return of premium feature. This feature refunds premiums paid toward long term care insurance if it is never used.
Some life insurance-long term care combination products will accelerate the death benefit so that the policyholder has access to cash to cover long term care expenses. Other products separate the long term care benefits so that they can be drawn completely independently of the life insurance.
Most policies are flexible in how the long term care monies can be spent. Many policies allow the monies to cover expenses in a facility as well as for in-home care.
There are caps to the long term care insurance payout. Some calculate the cap based on a multiple of the life insurance death benefit. For example, a $250,000 life insurance policy may determine that the long term care benefit is capped at twice the death benefit, or $500,000.
Some insurance carriers offer an additional rider that allow the policy to continue to pay long term care benefits even after the original policy's cap is met.
Some insurance carriers are willing to accept a simplified underwriting process. This makes it easier for potential policyowners with health issues to still qualify for a policy. While they may be faster, policies with simplified underwriting may not offer as high of a payout for either long term care or the death benefit.
Combination policies make long term care more accessible for people who may not be able to afford a more expensive individual long term care policy. With a variety of options, these policies can be tailored to meet the needs of each policyowner. A financial professional can help families review the various options to create a policy that works best for the household.
by: Ozeme J Bonnette
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