Life Insurance with Long Term Care Rider – A Policy that Really Helps
Many people think that life insurance care planning is only a decision if you want to purchase long-term care insurance. However, it is not only that.
Care planning is also a decision about the way you will fund your expense, where you will receive a long-term care that you agreed on, and who will be the one who provides the care.
Long term insurance is a great decision in many situations. However, it brings many risks. Even though many people do not own it, having a long-term care in place could save you a lot of money. Especially as care services have been increasing over the past years which could be a real and expensive risk for your financial future.
Even though you have few more options (such as self-funding or family provided care), life insurance with long term care reader is still one of the primary sources of funding long term care expenses.
Life insurance policies could be very expensive. Also, there is a big chance you will not be able to apply for the one you want if your health is poor or if you’re sick in the way that affects your general health. If you are only temporarily ill, or you have a disease that is normal for your age, you will not have a problem to find a policy that fits you. This way there is also a chance that you will be able to find affordable life insurance with long term care rider policy.
If you choose life insurance policy as the way to fund care expenses, you could also use it for other things. Don’t forget that this policy has a cash value, which you can withdraw in order to pay long term care expenses. You could also take a policy loan to pay those expenses.
Life insurance with long term rider policy could also be sold (life settlement option, including the one when the policy owner is terminally ill) in order to help with paying for long-term care expenses. Sometimes this kind of life settlement can give the policy owner even few times more money than actual cash value. In case the policy owner is terminally ill, proceeds from the sale are usually tax-free.
Before buying life insurance with long term care rider, make sure you check all the options you have and choose the one that is the best for you. Shopping around is the best way to check the price with different life insurance companies, as they usually don’t underwrite the same way. Choose the one that is the best in your situation, the one that fits your needs and your pocket.
You should check if you can afford the policy you choose, but also it shouldn’t be too small. In the first situation, you risk being late with your bills, which could lead to policy cancellation. If your policy is too small, you will not have enough to cover the expenses that you took life insurance policy for in the first place.