Asset Based Long Term Care
Asset-based policies provide long-term care coverage and also ensure that if a long-term care event does not occur, the remaining proceeds would be left to beneficiaries.  These policies couple long-term care benefits with either an annuity or life insurance policy and are leveraged towards the long-term care benefits.  The asset-based products provide clients with additional advantages not commonly found in traditional long-term care insurance policies.  Asset-based long-term care products can provide pricing and benefit guarantees where clients know what to expect in the way of benefits and have guarantees that the pricing for those benefits will not change in the future.  They also provide assurance that if a long-term care event does not occur, assets remaining in the policies can be left to beneficiaries.  There may also be some tax incentives available with asset-based.  The asset-based annuity product can have some tax shelter for the growth in the annuity if the proceeds are used for long-term care.  The life insurance policy can provide income tax free proceeds to beneficiaries if the long-term care feature is not used.  Asset-based policies provide tax free long-term care benefits and bypass probate if there are assets to be left to beneficiaries. The payment of premiums for asset-based or linked benefits can be done via lump-sum or spread out over a number of years.  Many currently held assets, both qualified and non-qualified can be transitioned into asset-based long-term care polices.  For example, a current owner can take an existing life insurance policy and exchange it for asset based life insurance.  Qualified funds such as those found in an IRA can be transitioned to provide an asset-based long-term care benefit as well.  Whether you are single or married, the need for long-term care planning is essential.  Having the right type and right amount of coverage can help alleviate concerns about coverage and how it will be paid.  Speak with a long-term care specialist to ensure you are properly evaluating all of your options to meet your long-term care needs. This option sounds allot like a Hybrid policy with some differences: Asset based polices tend to have a whole life base for the life insurance portion, while Hybrid polices tend to have a universal life base for it’s life insurance portion. Also, some Asset based polices can have joint coverage for couples, inflation protection options, life-time coverage. "Should I buy long term care insurance combined with life insurance?" Often times your answer will depend upon many factors such as your age, your marital or partner status, and your desired plan design.  Thus, the "best policy" for you may be different than the "best policy" for someone else.  That being said, for couples desiring long term care benefits combined with life insurance can be a great option. Below is a quick example of what this type of policy.