• Alternatives to Long Term Care Insurance

  • FINANCIAL MISTAKE: Failing to explore how certain annuities or life insurance policies can address long term care needs.

    Alternatives to Traditional Long Term Care Insurance

    Many people do not wish to pay a premium for a risk they may not need. For those with assets and do not wish to pay a premium, an annuity can be used to leverage assets against potential long term care needs. Likewise, for those who may not qualify for traditional long term care insurance due to health issues, some annuities can provide a benefit without underwriting requirements.


    Some annuities provide an enhanced benefit that can be used to fund long term care needs. These may have optional riders with guaranteed growth for the purpose of providing a lifetime income benefit (see Income Withdrawals Guaranteed for Life). Some of these policies may increase or double your income check in a long term care situation. These are perfect as a higher income is what is needed when a long term care event arises. If you never need long term care, your money still has the opportunity to grow (and some contracts may also offer an enhanced death benefit for beneficiaries).

    Life Insurance

    As with annuities, a life insurance policy with long term care benefits will ensure that if you never need long term care, there is still an asset available to the family. Life insurance policies which have a built in benefit for long term care allow for the insured to accelerate death benefits during their lifetime if they need long term care. This is often done with a Long Term Care Rider or a Chronic Illness Rider (see Living Benefits on Life insurance Policies). Some policies even double or triple the amount available for long term care. If the insured never needs to accelerate the death benefit for long term care, family assets are still increased as a death benefit.