A Unique and Financially Sound Alternative to Traditional Long-Term Care Insurance
It’s difficult to consider that at some point in our lives we may need help with basic everyday living needs, and even more difficult for some to discuss with family members who will care for you when you can no longer care for yourself.
Long-term care insurance has traditionally been considered a prudent purchase to help defray the exorbitant expenses incurred when you or a loved one need assistance for daily care, due to physical and/or dementia-related challenges. However, many of us resist buying traditional long-term care insurance because of its high cost and money lost if the benefits aren’t used.
If you’ve been holding off acquiring long-term care insurance because of the perceived financial risk, let us introduce you to another excellent option: linked benefit coverage. Linked benefit coverage simply combines long-term care with another type of insurance, like life insurance or an annuity. This means, if you never need to use the long-term carebenefits, your heirs receive a life insurance death benefit or the cash value of the annuity.
The most common type of linked benefit long-term care insurance is life insurance with an extended long- term care rider. This will allow the policyholder to exhaust the death benefit to pay for long-term care and provide additional money for long-term care that extends past the death benefit.
Another type of coverage is a deferred annuity that doubles or triples your money if you need long-term care. You may want to consider this if you already have an existing annuity that can be rolled over tax-free into a new annuity with long-term care benefits.
In 2010, the Pension Protection Act (PPA) offers new tax benefits for long-term care plans tied to a qualified life insurance or fixed annuity contract. PPA allows tax- free distribution of life insurance or annuity cash value to pay for long-term care. Protect your loved ones from shouldering the financial and emotional burden of care and loss, and build a legacy for their future.
To learn more, contact CAP Physicians Insurance Agency at 800 -819-0061 and ask for Janet Hemphill or email us at CAPAgency@CAPphysicians.com to learn more about this valuable coverage.