Long Term Care Planning

Asset-based long-term care insurance

Asset-based long-term care insurance

In this article

— Last Updated May 27, 2022

Read Time
2 mins
Reviewed by
Eric Berkman

Guide Asset-based long-term care insurance

— Last Updated May 27, 2022

Stephanie Wilson

Director of Operations

1564577429221

Reviewed by

Eric Berkman

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. A traditional long-term care policy is typically a stand-alone product, but asset-based long-term care insurance combines life insurance and long-term care benefits into one package.

basically it’s 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 “hybrid policy” offers tax-free long-term care (living) benefits either in addition to, or in place of an eventual death benefit. So that means you can access benefits from the policy over a period of time while you’re still alive to pay for long-term care services should you need help with activities of daily living (ADL). This will include nursing care costs at home or in a long-term care facility such as a private nursing care home.

Long Term Care Planning and Insurance Specialists

Ready to chat? get a free consultation

Get in touch so we can discuss your needs, and match you with the right product and coverage to fit your budget.

How does Asset Based Long-Term Care Work?

The way it works is that some, or all, of the life insurance death benefit payout of the policy holder, that would otherwise go to heirs upon their passing, goes back to the insurer for the cost of the long-term care coverage.

This type of insurance plan 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 it also can help the policy holder while they’re still alive, as they can access death benefit amounts to pay for long-term care expenses. The downside for the heirs is that if all of the benefits are used up for cost of 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.

Stephanie Wilson

ad516503a11cd5ca435acc9bb6523536?s=150&d=mm&r=gforcedefault=1

May 20, 2022

Article progress

In this article

Read Our Blog Our Most Recent Articles

Looking for some Advice? Considering your options for long term care?

Our professional long-term care planning experts can talk you through your best options based on your circumstances and provide you with a free assessment.

 

Untitled design (20)

get a free consultation Want to know your options for long term care?

Where are you in your Life Insurance planning?

Life insurance will help you protect those you love and count on you for providing financial support, in the event you pass away. We’ll help you find the right policy, with the best coverage and best rates.

Where are you in your Medicare insurance planning?

Medicare insurance will help get  the healthcare you will need when you turn 65.  We’ll help get you enrolled and get you the best rates and coverage you’ll need on a Supplemental Medicare to make sure you’re fully covered.

Where are you in your disability
insurance planning?

Disability Insurance will help protect you from the loss of income if you become sick or unable to work for an extended period of time.  We’ll help get you the best rates and the coverage you need.

Select Insurance Type

Select a Calculator