Long-Term Care And Life Insurance Hybrids

The simplicity of term life insurance policies is a great option for many Americans, but there are consumers looking for more out of their insurance policy, especially those with long-term care on the mind.  As individuals approach retirement, they should consider how they will pay for care if they ever need daily assistance.  Long-term care insurance is becoming more popular in the market place, and insurers are also offering hybrid policies that include long-term care insurance, life insurance and even annuity options.

According to the article "Long-term Care, Life Insurance, Annuities Part of New Hybrid Policies" by Gail Liberman on PalmBeachDailyNews.com, a private nursing home room can cost around $83,000 a year and this doesn't even count additional care.  Genworth Financial estimates additional care such as a home health aide costing around $41,000 or approximately $31,000 for a private, one-bedroom assisted living facility.  These costs can be overwhelming for someone looking to retire, but there are options.  With a long-term care rider on cash value life insurance, individuals can usually choose a long-term care benefit that will payout over a certain term.  Whatever doesn't get used will be part of the benefit for your beneficiary.

LIMRA estimates that life insurance policies coupled with either long-term care or chronic illness riders make up about 6% of the market and this number may be increasing.  It's important that consumers seriously consider if this type of hybrid insurance is right for them given their individual financial circumstances.  Long-term care life insurance and annuity hybrid policies can be very complex and the benefits may not end up covering all of your needs leaving you strapped.  It's a good idea to consult a tax advisor and financial expert to go through your specific details and help you sort through the many, many options.  It's easy to get overwhelmed with so many products to choose from, but with the right amount of effort put into the search, you should be able to find a great deal that will give you the peace of mind to retire comfortably.