Life Insurance with Affordable Long-Term Care

Monique Marshall |

Hey Baby Boomers...

Are you in the final years of planning your retirement? How prepared are you for long-term retirement needs? We'd encourage you to implement a plan now and not wait until it's too late.

In an unpredictable world, it is essential to plan for the future and protect ourselves and our loved ones from unforeseen circumstances. As we age, the need for long-term care becomes increasingly important, but the rising costs associated with it can be a cause for concern. Fortunately, there is a solution that provides both financial security and peace of mind: combining life insurance with affordable long-term care coverage. In this blog post, we will explore the benefits and options of this approach and how it can safeguard your future.

It is a common belief that Long-Term Care Insurance is too expensive (though it's in many cases less expensive than your coffee habit). In addition, we find clients often worry about paying for a product that they may not even need, or end up using. Thankfully, the Long-Term Care market has changed drastically over the last several years. There are many possibilities open to you that could address and overcome your reasons for hesitating in placing your protection.

Types of Life Insurance Policies with Long-Term Care Riders:

Several life insurance policies include long-term care riders or add-ons that can be a cost-effective way to secure long-term care coverage. These riders allow policyholders to access a portion of their death benefit while they are alive, specifically for long-term care expenses. There are two primary types of policies to consider:

  1. Traditional Long-Term Care Riders: These riders are added to permanent life insurance policies and provide long-term care coverage. They offer the flexibility to use the benefits for various types of care, such as nursing homes, assisted living facilities, in-home care, and adult daycare centers.
  2. Hybrid Long-Term Care Policies: These policies combine life insurance with long-term care benefits. They provide a death benefit to beneficiaries if the policyholder passes away but also include a long-term care component. If long-term care is needed, the policyholder can access a certain percentage of the death benefit to cover those expenses.

For example depending on your unique situation we may consider pairing a Permanent Life Insurance Policy with Long-Term Care Rider to affordably cover all your needs.

For example:

John Doe- male, age 45, in good health- can purchase a $300,000 universal life insurance life policy for family income replacement for $182 per month. For an additional $15 per month John can add a long-term care rider that can accelerate the $300,000 death benefit at 2% per month ($6,000) while living to pay for qualified long-term care expenses.

Now what exactly does that mean?

John has life insurance to protect and provide for his family- and the ability to use the death benefit while living (no death necessary!) for long-term care expenses should the need arise. This means, no matter what the future holds for John his single policy covers his expenses.

Advantages of Combining Life Insurance and Long-Term Care

By combining life insurance with long-term care coverage, you can enjoy several benefits, including:

  1. Cost-effectiveness: Compared to purchasing separate life insurance and long-term care policies, combining them can be more affordable in the long run.
  2. Financial security: You have the peace of mind knowing that both your loved ones and your long-term care needs are covered.
  3. Flexibility: The funds can be used to cover a range of long-term care services, giving you the freedom to choose the care that suits your needs best.
  4. Asset preservation: Accessing the long-term care benefits through a life insurance policy can help protect your other assets, such as savings and investments.

For more information about life insurance with living benefits for long-term care contact us and ask about Protection Planning. Life By Design Investment Advisory Services can help you find the Protection Planning options that make the most sense for you and that can offer you peace of mind.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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