Questions To Consider Before Purchasing A Life/Long-Term Care Combination Insurance Policy
- LCD Insurance Services
- May 4, 2019
- 2 min read
Updated: Sep 1, 2019
Life insurance protects the people you leave behind when you die. Long-term care insurance protects you while you are alive.
But did you know these two insurances are available in one hybrid policy? You can learn more about it here: https://www.lcdinsurance.com/life-w-long-term-care-insurance.
There is also a phenomenal article written by Elderlawanswers from June 2018: https://www.elderlawanswers.com/hybrid-policies-allow-you-to-have-your-long-term-care-insurance-cake-and-eat-it-too-15541.
Below are a few questions to consider.
When are Life/Long-Term Care Combination Insurance Policies a Good Fit?
These types of policies are a good fit for anyone who:
- Does not want to be dependent on family members for care; and
- Wants to be able to leave loved ones with financial peace of mind through a death benefit.
How Much Do these Types of Policies Cost?
Hard to answer, given each individual situation. They do cost more than a standalone life insurance policy, but are very cost-effective given that they are designed to provide you with long-term care benefits while you are alive, and/or a death benefit to your beneficiaries when you die. This type of policy is one of the few where the owner of the policy benefits from it while still living, if they need long-term care.
Are there any Downsides?
One downside is that if you use the long-term care benefit portion of the policy for an extended period of time, this will eventually decrease the death benefit to zero, so your heirs would not receive a death benefit from the policy.
LCD Insurance can help you by providing a better understanding of these types of policies, so that you can make an informed decision for you and your loved ones.
Be sure to bookmark LCD's Blog, Why It Matters, so you never miss helpful tips and articles: https://www.lcdinsurance.com/blog/
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