Combination Life Insurance and Long-Term Care Policy

Life insurance and long-term insurance are two types of coverage that many people need, even if the policies can be expensive. Insurance companies have a habit of offering combined life insurance policies and long-term care that can meet your needs, while reducing the cost of coverage. Consumers should carefully consider these policies combined to ensure that they provide the necessary coverage.

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    Most consumers understand the purpose of life insurance. Life insurance pays a death benefit to the beneficiary of the policy. The recipient can use this money to pay off debts, support employees of the deceased, funeral expenses and pay estate, or for other personal purposes. A long-term insurance pays for expenses related to the care of a person with disability or illness. Consumers primarily use this cover to pay the costs of long-term nursing home care.

Combination Policies

    Combination of life insurance and long-term care policies are generally whole or universal life insurance policies with a long term care rider, or in addition, the policy of life insurance. Consumers buy a life insurance policy with a death benefit and defined as necessary to use as long term care policy, the insurance company deducts the amount of expenses incurred by the death benefit. For example, if a consumer buys a $ 500,000 life insurance policy and requires $ 100,000 in long-term care, life insurance will pay $ 400,000 to the beneficiary when the insured person dies.

Combined Benefits Policy

    There are two main advantages for consumers to choose a life insurance policy and combined long-term care: less spending and a guaranteed benefit. With the purchase of a policy long-term care that draws against a benefit of life insurance, the cost to the consumer is less than buying two separate policies, with two separate benefits. In addition, consumers who buy long-term care insurance do not use it. Having a policy combination, consumers can have peace of mind that will use or long-term care insurance or their beneficiary will receive the total amount of life insurance. Combination of policies can also offer the guaranteed prizes that will not increase over time.

Other Options

    Consumers do not need life insurance in subsequent years. Consumers with a mortgage is fully paid adult children and retirement savings to support a spouse, you probably have sufficient financial resources to eliminate the need for life insurance. Consumers in this situation may want to compare the costs of a self-care long-term plan against the policies combined to determine whether the additional cost is suitable for their situation. Another option is to buy an annuity which provides coverage of long-term care. An annuity offers a return on investment defined through regular monthly payments. If the holder of the pension needs of long-term care, annuity then the company pays the costs of this coverage, which will reduce the value of the annuity.