Opinions differ on whether an Acceleration Rider on a life insurance policy is an adequate substitute for a separate LTCI policy or not. The answer depends, in part, on the size of
a life insurance policy, the money received while the policy is in-force
to pay long-term care costs, and how
much long-term care is expected to cost at the time it's needed.
 |
66% of Americans surveyed say long-term
care planning is important, but only 20%
have discussed the topic with an advisor |
If you do the math, you'll discover that an LTC Rider on a life insurance policy won't cover all of the possible long-term care expenses.
In fact, it may give a false sense of security that all needs would be
met. And keep in mind that long-term care benefits received will reduce a policy's
death benefit, possibly leaving little or nothing for beneficiaries.
However, the premiums on a stand-alone LTCI policy can be very
costly, depending on current age, health, and the benefits offered. If
these costs make such a policy too expensive, an LTC Rider on a life insurance
policy may be a reasonable middle-ground solution. An LTC Rider can allow for tapping into the funds in the future, should the need for long-term care arise.
For help in assessing your clients' personal situation, consider these
Agent Resources.
