Long-Term Care (LTC) Life Insurance Rider: An Expert Guide (2024)
Life insurance for long-term care is about $25/mo. If you're older than 54 years old, your life insurance and long-term care insurance could be over $700/mo. You could save on life insurance you choose term life insurance, but this type of policy may not include long-term care and has an end date. To secure cheap life insurance and long-term care insurance, you'll need to shop around and compare multiple companies.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states and over 20 years of experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ...
Licensed Agent & Financial Advisor
UPDATED: Feb 14, 2024
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Feb 14, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- The average cost of long-term care insurance is $25/mo
- Long-term care insurance prevents expensive out-of-pocket costs
- Most long-term care insurance policies supplement life insurance
Life insurance for long-term care can be expensive since most policyholders are older than 50 years old, which is when life insurance begins to increase.
You can supplement a life insurance policy; it’s essential to have a long-term care insurance policy with life insurance. The best life insurance companies provide long-term care insurance along with other insurance products.
Read through this guide to learn more about how to buy life insurance for long-term care and where you can find it.
Are you ready to see life insurance quotes for long-term care? Enter your ZIP code in the free online quote tool above to compare the best companies in your area.
Table of Contents
How much are life insurance rates for long-term care?
Long-term care is often attached to life insurance as a rider. What’s a rider? A rider is an added benefit to term life insurance or permanent life insurance.
On average, term life insurance is about $9 to $11 per month. However, a rider can make your monthly payments at least $25 per month.
The older you get, the more you’ll pay for life insurance and long-term care insurance. Let’s look at the cost of coverage for 55-year-old policyholders who have long-term care insurance.
Average Monthly Long-Term Care Costs
| Policyholder Summary | Average Monthly Cost For 55-Year-Old Policyholder | Lowest Monthly Costs for 55-Year-Old Policyholder | Highest Monthly Cost for 55-Year-Old Policyholder |
|---|---|---|---|
| Single Male | $142 | $156 | $257 |
| Single Female | $223 | $262 | $424 |
| Couple (Combined Premium) | $254 | $402 | $711 |
As you can see, insurance for anyone over 54 is more expensive than average. Long-term care insurance saves you thousands of dollars per year.
So what’s better for you? Continue reading to learn more about long-term care insurance and life insurance.
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Can I purchase life insurance and long-term care insurance together?
The short answer is yes. When you buy life insurance for long-term care, your premiums are usually more expensive.
However, some life insurance companies provide a discount when you have more than one type of insurance policy. Term life insurance with a long-term care rider is sometimes called a hybrid insurance policy.
If your life insurance company doesn’t have long-term care insurance, compare long-term care insurance companies.
How does long-term care work?
Long-term care provides services where health insurance won’t cover, and it comes with a policy limit. A reliable permanent life insurance policy can supplement your long-term care insurance.
This is standard under hybrid insurance policies. What’s hybrid insurance? Hybrid insurance is a combination of insurance policies wrapped into one. These insurance types are helpful when Medicare or Medicaid fails.
What are the pros and cons of hybrid life insurance?
The pros of hybrid life insurance are life insurance can quickly cover long-term care when something happens. Also, the government gives you leniency on taxes.
But the cons are the high prices. Even if you get a stand-alone long-term care policy, the rates are costly.
If it’s in your budget, try to get an annuity. There are tons of benefits, but there are some disadvantages. The sooner you get an annuity, the more prepared you’ll be for long-term care insurance.
Did we miss any long-term care insurance pros and cons? It may appear complicated but shop around until you find a policy that works for you.
Read more: Hybrid Life Insurance: What is it and should you have it?
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Life Insurance for Long-Term Care: What’s the bottom line?
Long-term care insurance costs can be expensive as you get older. If you rely solely on long-term care insurance, you’ll lose a lot on your policy limit over time.
Permanent life insurance, such as whole life insurance, can help you to protect against out-of-pocket costs. Study your options carefully so that you can get the most out of your policy.
Ready to find affordable life insurance for long-term care? Just use our free online quote tool below to find cheap insurance near you.
Case Studies: Exploring Life Insurance for Long-Term Care
Case Study 1: John’s Long-Term Care Dilemma
John, a 55-year-old policyholder, is considering long-term care insurance along With his life insurance policy. He wants to understand the cost implications and benefits of adding a long-term care rider to his existing coverage. By comparing quotes from various insurance companies, John can make an informed decision and find the most suitable and affordable option.
Case Study 2: Sarah’s Hybrid Insurance Solution
Sarah, a 60-year-old individual, is interested in purchasing life insurance and long-term care insurance together. She wants to explore the concept of hybrid insurance, which combines the benefits of both policies into a single plan. Sarah researches providers and weighs the pros and cons of hybrid life insurance to make an informed choice aligning With her financial goals and long-term care needs.
Case Study 3: Mark’s Budget-Friendly Approach
Mark, a 50-year-old policyholder, is concerned about the rising costs of long-term care insurance as he gets older. He wants to find a solution that fits within his budget while ensuring adequate coverage. Mark is considering alternative options such as annuities to supplement his long-term care needs.
Frequently Asked Questions
What is a Long-Term Care (LTC) life insurance rider?
A Long-Term Care (LTC) life insurance rider is an optional add-on or feature that can be included in a life insurance policy. It provides policyholders with the ability to access a portion of the death benefit in case they require long-term care services.
How does a Long-Term Care (LTC) life insurance rider work?
When a policyholder with an LTC rider qualifies for long-term care services, they can tap into a portion of their life insurance death benefit to cover the costs. The specific terms and conditions of the rider vary depending on the insurance company and the policy, but typically there are certain triggers, such as being unable to perform specific activities of daily living (ADLs), that determine eligibility for LTC benefits.
What are the benefits of having a Long-Term Care (LTC) life insurance rider?
The LTC rider offers several benefits:
- Financial protection: It helps cover the costs of long-term care services, which can be expensive and potentially deplete savings.
- Flexibility: Policyholders can choose how to use the LTC benefits, whether for in-home care, assisted living, nursing home care, or other qualified services.
- Legacy preservation: If the full LTC benefits are not used, the remaining death benefit will be paid to the beneficiaries upon the policyholder’s death.
Is an LTC rider suitable for everyone?
The suitability of an LTC rider depends on individual circumstances. It is generally more beneficial for individuals concerned about potential long-term care costs and want to protect their assets or provide for their care needs without burdening their family. It is advisable to consult with a financial advisor or insurance professional to assess whether an LTC rider aligns with your specific needs and goals.
Are there any limitations or restrictions with LTC riders?
Yes, there are certain limitations and restrictions that may apply to LTC riders. These can include:
- Specific eligibility requirements and waiting periods before the benefits can be accessed.
- Limits on the percentage or amount of the death benefit that can be used for long-term care expenses.
- Exclusions for pre-existing conditions or certain types of care.
- Additional costs associated with the rider, which can vary depending on the policy and insurance company.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active life and health insurance licenses in seven states and over 20 years of experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ...
Licensed Agent & Financial Advisor
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.