State Life offers a combination life/long term care policy with a rider that still has an option for an “Unlimited” period of extended care up to the monthly benefit you selected at policy issue.
That means, should you or your spouse go on claim you can receive care in your own home, assisted living, nursing home or memory care for as long as you need. The benefits will not run out.
The appeal of the policy is:
- Premiums are guaranteed never to increase
- Provides your estate a tax-free life insurance benefit if LTC is not needed
- Patented Joint coverage for two insured (one policy covers both spouses)
- Unlimited LTC rider is available
- Guaranteed 100% return of premium if you change your mind
This policy may be worthwhile for you to consider if you have liquid assets generally not needed for retirement income that can be easily re-positioned.
For example, you may have already set aside a preliminary liquid cushion of $250,000 of your savings should you or your spouse need long term care.
Let’s assume you are a 55 year old male and your spouse is 50. As an alternative to self-funding future long term care needs, you could choose to move $75,000 of the $250,000 in your savings into a “Joint” Combination Life/Long Term Care policy with an Unlimited LTC rider. (rider cost is $ 185 per month)
In doing so each spouse would receive:
- Unlimited long term care benefits ($8,945 each per month should you need care)
- $ 223,633 tax-free second to die life insurance death benefit to your beneficiaries should you not need care
- $ 75,000 return of premium if you change your mind
Alternatively, if you either don’t have a large sum of money available to move, or are using it to generate much needed retirement income, State Life has another option with an Annual Premium. It also has a guaranteed premium and an “Unlimited” Long Term Care rider available.