Insurance companies are growing increasingly adept at designing products that can satisfy two needs at the same time. These products are called linked products , and normally provide a long-term care benefit inside either an annuity or a life insurance policy. Thus far, the following designs are available from leading insurance companies:
- Annuities with Long Term Care Insurance Rider
These are basic annuities which offer all of the advantages annuities possess. But in addition, a rider at nominal cost can create a pool of money that can cover some long term care costs, usually for a limited period. They are usually funded by repositioning a current asset, either an existing annuity or a bank CD. One can often improve on ones current return and at the same time cover long term care costs. These products are ideal for a person who cannot qualify medically for long term care insurance and yet has a great need to be protected.
- Life insurance with Long Term Care Riders
These are whole life or universal life products that include long term care riders. They can be funded with single premiums or premiums over time. There is a death benefit at an appreciated amount that serves to transfer assets like traditional life insurance policies. But in addition, there is a substantial long term care benefit that can be utilized when long term care is needed. These products are ideal for a person who primarily wants to be protected against long term care costs but yet has a desire to transfer any remaining assets to heirs. They are more expensive than traditional long term care insurance policies, but the policyholder always receives a benefit, and the rates are guaranteed.