Planning Couple

Long Term Care Planning Alternatives

Long-term care is one risk with many solutions. Companies are developing new products and planning strategies to address the needs of consumers.


Let’s say that you have been thinking about purchasing long-term care insurance for some time, but then you think about the “wasted” premium dollars in case you never use the policy (Wouldn’t that be the best thing that could ever happen?), and you hesitate to make the purchase.

Several carriers provide life insurance policies with long-term care riders. This is a single strategy that plans for two financial risks: premature death and long-term care expenses.

The life insurance portion of the policy is generally permanent guaranteed universal life or whole life coverage. If you become ill, you can accelerate the death benefit to pay for long-term care. You can use the entire death benefit or a portion of it to pay for long-term care expenses. Any unused portion is paid to your beneficiary. If you never need long-term care, the entire death benefit is paid to your heirs tax free.

The long-term care portion of the policy provides comprehensive coverage in the setting of your choice. All levels of home care (skilled and custodial), adult day care, assisted living and nursing home care are covered.

To fund the policy, you can make a single lump-sum payment or pay an annual premium depending upon the company.


What happens if you can’t afford a long-term care insurance premium or are uninsurable? A life settlement may be an option for you.

A life settlement is the sale of an in-force life insurance policy by its owner to a financial institution as the provider. The policy owner receives a cash settlement offer higher than the cash surrender value but less than the death benefit, and all ownership rights and obligations of the policy are transferred to the provider.

Certain circumstances make this a good planning tool: if you have a life insurance policy that is about to lapse or is no longer necessary due to changes in your estate; if you need more discretionary income to maintain your lifestyle or purchase long-term care insurance; or if you have been diagnosed with an ailment that makes you uninsurable for long-term care insurance and you need funds to pay for home or facility care.


The long-term care planning market continues to evolve with new products and features that accommodate all ages, preferences and lifestyles. There is no reason not to plan for long-term care. The economy might be unstable but you can bring some certainty and control into your future. Call us today at 800-422-2655 for a free consultation.

"I wanted to take this opportunity to thank you for your time and hard work in helping us obtain long term health insurance. You are a true professional in every sense of the word. It was a pleasure working with you and learning about a very complex subject."
VR- Rochester, NY