What to Know About Long-Term Care Insurance

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While it may be difficult to imagine now, planning for long-term care costs is an important part of any financial planning as there’s a good chance you’ll need some sort of help later in life. In this article, we can help you better understand long-term care insurance and how a life insurance policy can be a good alternative to long-term care insurance.

What does long-term care insurance cover?

Long-term care insurance helps pay for long-term needs—such as nursing homes, assisted living facilities, adult day care or in-home care—not covered by regular health insurance, Medicare or Medicaid. The rates you pay for long-term care insurance can depend on a variety of factors such as your age, health, the amount of coverage you choose and more. 

You typically qualify for the benefits of a long-term care policy when you can’t perform at least two activities of daily living, such as bathing, eating or getting dressed on your own, or you have dementia or another cognitive impairment. One downside to long-term care insurance, however, is that the price is not always guaranteed to stay the same and can often increase. 

Long-Term Care Insurance Alternative: A Fully-Underwritten Permanent Life Insurance Policy

A fully-underwritten permanent life insurance policy is a strong alternative to a long-term care policy. With such, you have the option of adding a chronic illness insurance rider to your policy to enhance your coverage. Adding a chronic illness insurance rider to your policy might increase your premium, but can be worth the added cost. A chronic illness insurance rider can provide additional coverage for your long-term care needs and flexibility that your beneficiary will receive the remaining balance of the death benefit if you, as the policy holder, accessed the death benefit for chronic-illness care. Additional coverage options include critical illness riders and the accelerated death benefit, which allows you access to death benefits while you’re alive.

In addition to a chronic illness insurance rider, a key feature of permanent life insurance policies is the cash value built alongside maintaining the death benefit. This cash value component can be used to cover the same costs covered by a long-term care insurance policy.

Let SelectQuote Help You Find the Best Permanent Life Insurance Policy For You

There are tons of options and types of coverage when it comes to permanent life insurance. Whether you’re looking for an alternative to long-term care coverage or just life insurance in general, SelectQuote can help. We’ll take the time to understand your needs and can shop some of the most trusted life insurance companies in the nation, finding you multiple quotes and coverage options in just minutes.

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