If you're considering investing in long-term care insurance protection, you should evaluate the differences between a standalone long-term care insurance policy and a life insurance policy with the long-term-care benefit rider. Both can provide valuable benefits to you as you get older, but one policy might be more appropriate for you than another.
A standalone long-term care insurance policy is only going to offer you the benefits of reimbursement or cash payments in the event that you are unable to perform two or more activities of daily living. One of the biggest concerns among today's baby boomers is the risk of outliving their savings, and the high cost of healthcare for the elderly make long-term-care insurance an important product. If you need assistance, whether it's in your own home or through a nursing home facility, long-term care insurance will help to cover the high costs of getting the help that you need. This is also critical for those families who don't want to place a burden on their children or other caretakers. Unlike a life insurance policy with the long-term-care rider, long-term-care insurance only addresses the needs associated with protecting your assets and reimbursing care if you should need it.
A life insurance policy, on the other hand, has several benefits that might be more flexible for your individual needs. For example, a life insurance policy can provide your beneficiaries with a tax-free lump sum when you pass away. However, access to a long-term-care rider also makes it easy to tap into the funds while you're still alive. A universal life insurance policy, which covers you throughout your entire life, can also build cash value, which is helpful for borrowing through loans, even as a college savings plan. A life insurance policy with the long-term-care benefit rider is ideal for anyone seeking flexibility, lower premiums, and a product that helps them achieve multiple goals. If you are still relatively young, consider the many benefits offered by a life insurance policy. You'll still have access to the funds for healthcare assistance if you need them, but you'll also be serving multiple purposes with just one policy