1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    Asset Based Long Term Care provides a unique solution to providing for the expense of long term care while at the same time providing other benefits. Generally, it is provided with a base of life insurance or an annuity. One of the problems with traditional Long Term Care Insurance is affordability. Also the underwriting is very strict. Because Asset Based Long Term Care is underwritten much like a life insurance policy, it is usually easier to qualify. Many traditional Long Term Care policies are use it or lose it, although many policies do have return of premium provisions. With Asset Based Long Term care written with a life insurance chassis, if you do not use the long term care provision, you beneficiaries will receive the death benefit, as in a traditional life insurance policy. If the plan is Annuity based, you receive the interest and tax advantages of an annuity, but the flexibility of utilizing the funds for long term care should you need it. While most of these hybrid products are not as comprehensive as traditional long term care they can be a great alternative depending on the goals and personal situation of the client.
    Answered on March 18, 2015
  2. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Asset based long term care insurance uses an asset (life insurance or annuity) with a rider or built in feature that allows the death benefit to be used for long term care needs, if the insured person qualifies for those services. What LTC benefit is not used goes to the beneficiary upon death of the insured.
    Answered on March 18, 2015
  3. 1976 POINTS
    Ronald Hinch
    Regional Marketing Director, Capital Choice Financial Group,
    Asset based long term care insurance is a policy that is also called a hybrid policy. This means the the premium invested into an annuity policy can be used either as income for retirement or can be converted into long term care use in the case of being placed into a nursing or convalescent center.
    Answered on June 3, 2016
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