Family Value: Insurance Changes - WSJ.com
Long Term Care Insurance may be getting more attractive. It has always been an insurance product that hasn't satisfied the needs of the masses because of the premiums. But maybe with some changes, it will catch hold.
Wednesday, April 21, 2010
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1 comment:
It is a smart move to the value of an old life insurance policy or a non-qualified annuity to pay the premium for a long-term care insurance policy.
However, it rarely makes sense to buy products that combine life insurance with long term care insurance or an annuity with long term care insurance. If you need care, you end up losing much, if not all, of the money you invested into the product (including most, if not all, of the death benefit.)
If you want to guarantee that your heirs receive your entire premium back, you're better off with a long term care insurance policy that has a "Full Refund of Premium" rider.
The other downside to the Life/LTC and the Annuity/LTC combination products is that they can't qualify for special asset protection under any of the Long Term Care Partnership programs that have been instituted in 34 states.
Scott A. Olson
www.LTCInsuranceShopper.com
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