Bloomberg published an article today on long term care and life insurance. It was a fairly good overview, but a bit limited on the products available. They keyed in more on the life products where you have to pony up a lump sum premium like for Genworth’s Total Living coverage or Lincoln Financial’s Money Guard Reserve.
You should also note that North American’s universal life products that allow the policy holder to accelerate out the death benefit for long term care. You pay regular life insurance premiums, so no lump sum is required to start it. Coverage amounts start at a $25,000 benefit, so these can be very affordable. For example, for a female age 60, preferred non tobacco, a $25,000 guaranteed to age 120 universal life is $36.26 a month. Not a bad starting point. Face amounts go up to $50,000,000 , so that can fit a wide range of situations and goals. Maximum issue age is 75.
If the lump sum life insurance products appeal to you, make sure you compare them to annuities with long term care riders. You can leverage 2 to 3 times your annuity for long term care benefits, and they come are inflation protection. For example a $100,000 annuity with an initial $200,000 long term care benefit. Genworth has a Total Living Coverage Annuity, and United of Omaha has Living Care Annuity plans.
Contact me for a quote.