Long Term Care Planning

Asset-based long-term care insurance

Asset-based long-term care insurance

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— Last Updated May 27, 2022

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2 mins
Reviewed by
Eric Berkman

Guide Asset-based long-term care insurance

— Last Updated May 27, 2022

Stephanie Wilson

Director of Operations


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.

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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


May 20, 2022

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