Asset based long term care insurance

— Last Updated May 27, 2022

Asset based long term care insurance

In this article

— Last Updated May 27, 2022

Read Time
2 mins
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Reviewed by
Eric Berkman
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Asset based long term care insurance

Stephanie Wilson

Director of Operations

Read Time

2 mins
Group-27.png

Reviewed by

Eric Berkman

In this article

Asset based long term care is a great alternative to traditional long term care insurance

A product that’s gained popularity to help provide benefits to pay for long term care is something called asset based long term care insurance.   Traditional long term care insurance is typically a stand-alone product, but asset based long term care insurance is basically a life insurance policy with something called linked benefits. Some folks even refer to it as linked benefit long term care insurance.  This type of policy offers tax-free long term care (living) benefits either in addition to or in place of a death benefit.  So that means you can access benefits from the policy while you’re still alive to pay for your long term care needs.  

How does Asset Based Long Term Care Work?

The way it works is the benefits are paid from the death benefit that would otherwise go to heirs upon the passing of the policy holder.  So, it can be a really good way to get both life insurance that offers coverage for loved one’s if the policy holder passes away, and also can help the policy holder while they’re still alive as they can access death benefits to pay for long term care needs.   The downside to the heirs is that if all of the benefits are used up for long term care then there will be no death benefit available once the policy holder dies. Therefore, the death benefit component of the policy will no longer be available. 

So, are you a candidate for asset based long term care insurance?  Maybe.  But the best way to know is to get in touch with us so we can learn about your situation, what you’re looking for, and then we can see if this type of long term care insurance is best for you.  

May 20, 2022

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