New types of policies are emerging that combine life insurance with long-term care (LTC) insurance, getting you covered for both. If you’re intrigued by these hybrid policies, they may be worth a look. Here’s a few notes about how they work.
- Policy dependent, you pay one lump-sum premium (or a few large annual premiums) for fewer than 10 years, generally. The average cost of a single-premium combination policy is $75,000.
- The policy offers money for LTC that’s equal to several times your premium payments.
- The policy’s death benefit will be reduced, although some policies guarantee a small percentage of the full death benefit, such as 10%; even if you use all the money allocated for LTC.
- For some policies, you may need to supply medical records and take a medical exam to qualify. If you’re healthy, you’ll end up paying less if you buy a policy that requires both an exam and medical records.1
Is the “combo” insurance policy right for you? We can help you make an educated decision. Give us a call to see if you’re a good candidate for combination insurance!
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The information within this article is for educational purposes only and does not constitute legal or tax advice. Customers should consult their legal and/or tax professional regarding their own unique situation. Insurance product features, benefits and guarantees are based upon the claims paying ability of the issuing insurance company.
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[1] https://www.nerdwallet.com/blog/insurance/combine-life-insurance-long-term-care/