Is Long Term Care Combined with your life insurance a viable option?
It could be depending on your specific situation
Medicare does not cover long term care beyond skilled nursing after an illness or surgery. Medicaid only covers if you have exhausted most of your assets.
Long Term Care Options:
5 Ways to Get Long Term Care
Self-Funded.
Great Idea but few can afford the cost.
Daily Average Cost:
Private Facility $297
Home Healthcare $169
Assisted living Center $148
Adult Daycare $78
Family:
Great and less expensive if family available but it does put a burden on the family.
Group Policies at work:
Great but not an option for everyone.
Private Long Term Care Insurance:
A viable but costly option.
Rates can be raised as people have experienced. You take the rate increase, reduce the benefit or drop your policy. Another disadvantage is if you never use it you lose it. No benefit paid is lost money.
Combination Of Life Insurance and Long Term Care Insurance
Long Term Care sold as a rider on your Life Insurance Policy.
The benefit is set as a monthly percentage of your death benefit usually 2% to 4%. For example A $100,000 policy at 2% would pay a $2000 benefit until the $100,000 benefit was exhausted. If you never use the benefit the full Life Insurance proceeds are paid to your beneficiary.
Disadvantage is you must buy permanent Insurance to purchase the Long Term Care Riders. Whole Life, Universal Life can be expensive.
Everyone has a unique situation, and everyone should have some sort of plan for the Golden Years.
Forbes Advisor
AARP Magazine