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How to Unite Long-Term Care and Life Insurance

What to know about insurance policies that combine long-term care and life benefits.

Combination policies are policies that combine long-term care and life insurance coverage.  These policies cover the long-term care expenses that regular health insurance or Medicare will not.  These policies are unique because, if you do not end up needing your long-term care coverage, then the insurance company will convert your coverage into a death benefit payable to your beneficiaries.  Considering this special form of insurance?  Then here are some of the pros and cons to weigh.

  • The Pros of Combination Policies

The most obvious advantage of securing a combination policy is that you will get a return for your investment, whether that be long-term care coverage or life insurance coverage.  Additionally, because combination policies require a lump-sum premium or a limited number of premium payments, you usually do not need to worry about premium hikes.  Finally, some combination policies offer a money-back guarantee.  With these policies, the insurance company will return your premium if you decide that you don’t want your policy after a certain period of time.  If you decide that you no longer want your policy before then, you can get a percentage of your premium back.

  • The Cons of Combination Policies

Before you decide to secure a combination policy, it’s important to consider the downsides of this coverage, as well.  To start, if you only need life insurance coverage, then you are better off securing a dedicated life insurance policy.  This is because life insurance policies typically offer more coverage than combination policies are designed to do.  Additionally, combination policies are seen more as a supplemental form of coverage.  This means they work best for people who already have a life insurance policy in place.

This is what you need to know about combination policies.  Do you have questions regarding your long-term care or life insurance needs?  If so, then contact the experts at Scautub Agency in Scotia, New York.  We are ready to get you the coverage that you need today.

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