Page 73 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

Are There Any Other Options? 55 Chapter 10 Are There Any Other Options? or some people traditional Long Term Care Insurance may be Fa good option but it’s not the best option. In this chapter we’ll explore a relatively new insurance product that is a good ft for someone with signifcant assets that are relatively liquid and not needed for retirement. Linked Beneft Policies Earlier I mentioned that some people have enough income and assets to make the determination that they can effectively self-fund their long term care expenses. Still, doing so means that they must reserve a signifcant portion of their wealth to be used in the event of a need for long term care. An alternative to self-funding is a linked life and long term care product. These are usually referred to as linked beneft policies. With a linked beneft life insurance policy, you take a portion of your assets and purchase a single premium life insurance policy with long term care benefts. This premium purchases a universal life insurance policy with a death beneft which on average is about two times the amount deposited. For example, a $100,000 premium might purchase a $200,000 death beneft. The policy pays a rate of return on the balance in your policy account, growing the account balance and possibly your death beneft over time. If you never need long term care, the death beneft of your policy at the time of your death will go to your benefciary. If you do need long term care, your policy will provide a monthly beneft to reimburse you