Today’s life insurance policies provide the best of both worlds. Not only will they pay upon death, but these newer plans will enable you to access the death benefit to pay for home care and facility care, should you become ill.
These exciting new products are helping many clients protect themselves against the threat of a LTC illness.
For example, a 56-year-old female purchased a $310,000 life insurance policy for a premium of $400 per month. Not only does this plan provide a death benefit, but should she require long-term care services at home or in a facility, she can draw $12,400 per month from the face value to pay for those services. Whatever she does not use for care is payable as a death benefit.
Several companies offer these plans but before proceeding, these are the questions that need to be asked:
-Are the benefits guaranteed?
-Will the contract pay cash or is it expense reimbursement?
-How are the benefits triggered?
-Will the plan pay for family, friends, or neighbors?
-How is the death benefit reduced as the living benefits are paid out?
-Is there a waiting period?
-Can the premiums be increased or are they guaranteed?
-Is there a Return of Premium feature?