I've heard that certain life insurance policies offer LTC benefits. How do such combo plans work? Are they really beneficial?
Total Comments: 8
Posted: Mon Feb 15, 2010 03:24 pm Post Subject:
Usually this is the accelerated benefit rider, which allows you to access part of the death benefit for terminal and in some cases--depends on the company--chronic illness. It's definitely not a replacement to long term care insurance, but is a slight hedge against the costs.
Usually insurance companies do not charge in addition to the regular premium for having this rider, and instead charge a small fee when/if the rider is exercised.
Posted: Tue Feb 16, 2010 06:10 am Post Subject:
You won't be interested in such coverage only when you're wondering whether you'd ever need LTC benefits. Just think of the risk and the cost you'd need to bear in the event you need such services. Also, make sure you choose to work with a professional who's connected with a number of companies in this regard.
Posted: Wed Feb 17, 2010 06:16 am Post Subject:
It's definitely not a replacement to long term care insurance, but is a slight hedge against the costs.
Yes, it's the rider which provides the LTC benefits.
The permanent life insurance policy that you're buying is actually the base policy. More often you'd have a recurring premium for such policies.
Posted: Thu Feb 18, 2010 05:30 am Post Subject:
The Life<C products would accelerate your death benefit in order to cover you for the listed LTC expenses. There is also an optional benefits extension offer for an additional cost. It might help you receive LTC benefits worth many times your death benefit.
Posted: Fri Feb 19, 2010 08:08 am Post Subject:
The policy holder has to choose an LTC fund and a stipulated period during which the fund will get disbursed. This duration might stretch over 24-48 months. You'll be compensated up to the max daily benefit limit as defined by the IRS. This would help satisfy the tax qualification criteria for the LTC benefit.
Posted: Fri Feb 19, 2010 10:36 am Post Subject: Life insurance - LTC Combo
Life insurance and Long Term Policy combo offers to pay out the insured in full or part of the death benefit if the policy holder needs it for long term care. The amount paid out for long term care later gets deducted from the death benefit that the beneficiary receives when the insured dies.
Posted: Mon Feb 22, 2010 02:10 am Post Subject:
Midland National Life offers at no additional cost the ability to use 2% of the death benefit for the purpose of care. If you can not perform 2 of 6 ADL's, the company will allow 2% of the death benefit every month for care. Their policy is a guaranteed death benefit U.L. and is very competitive with the Big Boys.
Posted: Tue Feb 23, 2010 05:53 am Post Subject:
The Life+LTC combo product holds certain exclusive offers like the return of premium benefit. This ROP benefit offers a refund of your entire premium under any circumstances. Once you'd ask for a return of premium, your policy gets canceled naturally.
Posted: Mon Feb 15, 2010 03:24 pm Post Subject:
Usually this is the accelerated benefit rider, which allows you to access part of the death benefit for terminal and in some cases--depends on the company--chronic illness. It's definitely not a replacement to long term care insurance, but is a slight hedge against the costs.
Usually insurance companies do not charge in addition to the regular premium for having this rider, and instead charge a small fee when/if the rider is exercised.
Posted: Tue Feb 16, 2010 06:10 am Post Subject:
You won't be interested in such coverage only when you're wondering whether you'd ever need LTC benefits. Just think of the risk and the cost you'd need to bear in the event you need such services. Also, make sure you choose to work with a professional who's connected with a number of companies in this regard.
Posted: Wed Feb 17, 2010 06:16 am Post Subject:
It's definitely not a replacement to long term care insurance, but is a slight hedge against the costs.
Yes, it's the rider which provides the LTC benefits.
The permanent life insurance policy that you're buying is actually the base policy. More often you'd have a recurring premium for such policies.
Posted: Thu Feb 18, 2010 05:30 am Post Subject:
The Life<C products would accelerate your death benefit in order to cover you for the listed LTC expenses. There is also an optional benefits extension offer for an additional cost. It might help you receive LTC benefits worth many times your death benefit.
Posted: Fri Feb 19, 2010 08:08 am Post Subject:
The policy holder has to choose an LTC fund and a stipulated period during which the fund will get disbursed. This duration might stretch over 24-48 months. You'll be compensated up to the max daily benefit limit as defined by the IRS. This would help satisfy the tax qualification criteria for the LTC benefit.
Posted: Fri Feb 19, 2010 10:36 am Post Subject: Life insurance - LTC Combo
Life insurance and Long Term Policy combo offers to pay out the insured in full or part of the death benefit if the policy holder needs it for long term care. The amount paid out for long term care later gets deducted from the death benefit that the beneficiary receives when the insured dies.
Posted: Mon Feb 22, 2010 02:10 am Post Subject:
Midland National Life offers at no additional cost the ability to use 2% of the death benefit for the purpose of care. If you can not perform 2 of 6 ADL's, the company will allow 2% of the death benefit every month for care. Their policy is a guaranteed death benefit U.L. and is very competitive with the Big Boys.
Posted: Tue Feb 23, 2010 05:53 am Post Subject:
The Life+LTC combo product holds certain exclusive offers like the return of premium benefit. This ROP benefit offers a refund of your entire premium under any circumstances. Once you'd ask for a return of premium, your policy gets canceled naturally.
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