Life insurance with long term care benefits - Long-term care and life insurance products provide linked benefits

Compare Life Insurance Policies That Pay For Long Term Care

Starting in 2010 the Pension Protection Act provides new tax benefits for certain life insurance policies that can pay long term care costs. These special policies are offered by only a few insurance companies.

What makes these "hybrid long term care insurance" policies attractive? The sales pitch addresses the concern by many that if they buy traditional long-term care insurance and DO NOT EVER NEED long term care, they wasted their money. With a hybdrid long term care policy, the sales pitch goes "if you don't use it; you don't lose it (meaning your money)."

We urge you to read the information on this page before buying a hybrid LTC policy. Then you'll know you did your homework and made the right decision for yourself and your family.

The First Question To Ask?
Do I Really Need Life Insurance?

The Second Question To Ask?
Is the Hybrid Life Insurance Policy Being Offered The Best (Most Life Insurance & Long Term Care Benefit)

Comparisons & Information from the American Association for Long-Term Care Insurance
If you have questions or would like to connect with a designated long term care insurance professional who can explain your options and make sure you get the best coverage for the best cost, call the American Association for Long-Term Care Insurance's offices at (818) 597-3227. Our salaried staff will gladly help you with out any cost or obligation to speak to an insurance agent.

Why Would I Be Interested In A Life-LTC Combo Product?

The primary advantage of the life insurance combination product is that the buyer will get some benefit from their premiums even if he or she does not eventually need long-term care.

Simply stated, you have a win-win situation. Either you use (some or all) of the long-term care benefit or someone receives a life insurance payment. Of course, this assumes you do have some need or desire for life insurance protection.

The "what if I never need long-term care?" concern is one of the major reasons people don't protect themselves and their loved ones against the potential risk of needing this care and the enormous cost (both financial and emotional on your family and loved ones) that occurs when the care is needed. So, if that is a reason that's been holding you back from looking into protection, you no longer have an excuse ... at least not that one!

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Are All Life Insurance Policies That Pay Long Term Care Benefits The Same?

NO. There can be significant differences.

Here is a real comparison of two policies from two leading insurance companies. For each policy, we compare policies for a 65 year old married female. The initial policy requiures a $100,000 single payment.

Policy A would pay a Death Benefit of $193,906.
Policy A would pay a monthly long term care benefit of $8,079.

Policy B would pay a Death Benefit of $150,121.
Policy B would pay a monthly long term care benefit of $6,255.

Policy C would pay a Death Benefit of $165,997.
Policy C would pay a monthly long term care benefit of $5,533.

The significant difference -- especially in the monthly long term care benefit--is why we stress the importance of working with a knowledgeable long term care insurance professional who can compare the various products for you. Call AALTCI at (818) 597-3227.
Rates calculated February 2012 and subject to change.

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Who Should Consider a LTC Hybrid (Life+LTC) Policy?

Do you have "LAZY MONEY" ... and do you HAVE A NEED FOR LIFE INSURANCE?

To obtain at least some meaningful long term care benefit each person will have to write a check for $50,000 or more (twice that for a couple). Below we have the latest data on what people pay for this protection and at what ages they buy.

So the first question to answer is "do you have that kind of cash to spare?" We like to say, this is ideal for individuals who have "lazy money" sitting in money market accounts or bank CDs that now pay practically no interest. You might be able to use this money to help you plan ahead for the risk of a future long term care need.

The second question is, "do you need life insurance?"

Is This You?

You understand the need for long term care but you are hesitant to commit to paying for a product (traditional LTC insurance) that you may never need?

You are interested in leaving money you are not currently using to loved ones.

You are concerned that the cost of long term care will be more than what you have saved ... or you want to use some of your money and some from an insurance company should you ever need care.

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How Much Do These Policies Cost?

These are typically single premium policies which means you write a single check (versus writing a check every year).

The following comes from the 2011 Long Term Care Insurance Sourcebook, research conducted yearly by the American Association for Long-Term Care Insurance.

Amount Paid - The Single Premium Face Amount
Less Than $25,000 ......................... 0.8%
Between $25,001 - $50,000 ........... 7.5%
Between $50,001 - $100,000 ....... 25.5%
Between $100,001 - $200,000 ..... 41.0%
Over $200,000 .............................. 25.2%

Couples remember these figures must be doubled if you each want equal coverage.

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What's The Best Age To Apply For Life Insurance That Pays For Long Term Care?

Just like traditional long term care insurance, you will need to "health qualify" for this coverage. So, you need to apply for coverage while you are still in relatively good health.

The following comes from the 2011 Long Term Care Insurance Sourcebook, research conducted yearly by the American Association for Long-Term Care Insurance.

Issue Age For MEN
Between 35 and 44 ............. 1.1%
Between 45 and 54 ........... 10.0%
Between 55 and 64 .......... 37.1%
Between 65 and 74 .......... 40.0%
75 or older .........................11.5%

Issue Age For WOMEN
Between 35 and 44 ............ 1.2%
Between 45 and 54 ........... 9.0%
Between 55 and 64 .......... 34.0%
Between 65 and 74 .......... 39.5%
75 or older .........................16.2%

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Are There Health Qualifications?

Yes.

Some people have mistakenly been informed that hybrid long term care insurance policies were created for people who can not otherwise health qualify for traditional long term care insurancve. This is NOT true. That said, some policies offer "simplified health underwriting" which could be advantageous.

A VERY IMPORTANT POINT If you have some existing heralth conditions or take medications (even common ones) it is vital to speak with a knowledgeable long term care insurance professional. Some insurers will ask "IF YOU HAVE BEEN DECLINED" for coverage with another carrier. You want to avoid that!

Simplified Health Underwriting requires NO medical exam and typically medical records are not obtained. A telephone interview with a nurse usually is sufficient.

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Can You Really get Your Money Back?

It is important to note that policy language can differ so it really is important to ask questions and read your policy carefully.

That said, surrender charges for lapsing the policy are generally waived allowing for the opportunity to get your money back without penalty. Of course that means you will have lost the growth of funds had you invested them. But many people like the fact they can get their money back -- even if it is worth less.

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What Are Some Disadvantages That Might Make Traditional LTCi Better?

Well, the obvious one is you have no need for life insurance. Thus you would be buying something you have no need for.

You might not have sufficient cash available to purchase a single premium policy that costs $50,000 or more (the average size for a single premium sale is about $75,000 per-person).

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How Can I Get More Information Or Find Policy Costs?

Comparisons & Information from the American Association for Long-Term Care Insurance
If you have questions or would like to connect with a designated long term care insurance professional who can explain your options and make sure you get the best coverage for the best cost, call the American Association for Long-Term Care Insurance's offices at (818) 597-3227. Our salaried staff will gladly help you with out any cost or obligation to speak to an insurance agent.

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