This product we are going over is hybrid long term care insurance in its simplest form. You are going to transfer money to an insurance company, and in return either get long term care benefits, a life insurance benefit paid out to your family, or a combination of both.
For this example, say you take $100,000 that you had earmarked for long term care and put it into this policy.
The main appeal of this policy is the long term care benefit. For the $100,000 you put into the policy, you are going to get $300,000 of long term care benefits. You are basically tripling your money.
This policy can be purchased for either a single person or for a couple. If you are single, and you need long term care, you will receive $4,166 monthly for 72 months.
If you are splitting the policy between two people, you will receive $3,333 monthly for 90 months.
This money can pay for care in whatever form you choose, from home health care to nursing home care. Once you need care, there is not a waiting period, meaning it will start paying on the first day you qualify for benefits.
If you do not end up needing the long term care benefits at all, when you pass away, your beneficiaries will receive your initial $100,000, plus some interest, paid out to them in the form of life insurance.
If you end up only needing a small amount of long term care, meaning you do not use up the initial $100,000 deposit, your beneficiaries will receive the remainder paid out to them in life insurance.
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