Long Term Care via a Whole or Universal Life Insurance Policy
One of the biggest concerns our clients have when shopping around for a Long Term Care (LTC) policy is the fear that they may purchase a traditional LTC policy and lose the value of their accumulated premiums should they pass without utilizing the coverage. Insurance companies have attempted to provide a solution to this dilemma by creating life insurance policies that can be leveraged to pay for LTC costs, but still retain their value should the need for LTC arise.
Potential Benefits of Using a Life Insurance Policy to Cover LTC Needs
Reasons Why Using a Life Insurance Policy to Cover LTC Needs May Not Be a Good Fit
- Accelerated death benefit (ADB) policy payouts for LTC may be more limited than the benefits you could receive from a traditional LTC policy. Hence, it is important you examine a life insurance policy with ADB payout for LTC needs closely to ascertain if the coverage is sufficient for your needs.
- If you wish to use the death benefit to create an estate for heirs, utilizing the ADB feature to pay for LTC costs will reduce this amount. It is important to examine current coverage against your needs and speak with a licensed financial planner or estate planning attorney to make sure you have adequate insurance to cover potential financial liabilities in the event of your passing.
Universal Life Policy with LTC Rider from Nationwide®