Yes, getting Long Term Care Insurance along with Life Insurance is very common. Some Life Insurance Plans even offer "living benefits" that allow you to take part of the face amount in cash to use for long term care purposes. To take advantage of that feature, you would need to be unable to do two or more ADL's, plus whatever criteria is stated in the policy. The death benefit would then be reduced by that amount, or a factor of that amount.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The cost of long term care exceeds the expectation of most people. Long term care can easily erode a substantial amount of money. Because traditional life insurance doesn’t address the cost of long term care, these policies are important. The cost for long term care is increasing every year. Companies that once offered Long Term Care have withdrawn from the market. In response some life insurance companies are offering limited living benefits which would act like Long Term Care insurance by paying out part of the death benefit before death occurs.
There are some life insurance policies that offer Long Term care benefits in the policy. However, they do not offer the same benefits as a stand alone Long Term Care policy.
A good long term care policy will have 3 different benefits that include nursing home, assisted living and home healthcare. You will be able to use any of the 3 as the need arises. You can also decide the length of the benefit and the amount of the monthly benefit that you would receive. You should consider an inflation protection rider so the monthly benefits will grow over time. You may not need the benefits for 20 years or more and the cost of care keeps rising. In addition, someone in their 50's will pay much less for the policy than if they wait until their 60's. The earlier you get the policy the more you will save.
That is a really great question! I am glad that you asked, as a recent study showed nearly 70% of seniors would at some point require assisted care, and are not prepared for the cost. A good retirement strategy has a life insurance policy to provide an income and cover funeral expenses, and a long term care policy to protect against the costs of that care. Many insurance policies allow the withdrawal of the death benefit funds, and unfortunately many people are forced to do that. When they do, there are always fees, interest, and tax consequences that sharply reduce the amount received, and often leave the spouse without the funds needed to pay for funeral expenses. Please consult an agent to see what products will be best for you. I have a couple that are very good, if you would like to discuss them, please feel free to contact me. Thank you for asking!
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A good long term care policy will have 3 different benefits that include nursing home, assisted living and home healthcare. You will be able to use any of the 3 as the need arises. You can also decide the length of the benefit and the amount of the monthly benefit that you would receive. You should consider an inflation protection rider so the monthly benefits will grow over time. You may not need the benefits for 20 years or more and the cost of care keeps rising. In addition, someone in their 50's will pay much less for the policy than if they wait until their 60's. The earlier you get the policy the more you will save.