Should I buy a long-term care insurance plan with linked benefits?

A long-term care insurance policy with linked benefits can benefit both you and your family.

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Aging in America can be expensive—especially if you end up needing long-term care in a nursing home or through a home health worker. One year in private a room in a nursing homefor example, it costs an average of about $108,405 nationwide.

The simple fact is that most people will not be able to afford this type of out-of-pocket expense. But if you’re worried about whether you’ll be able to pay for long-term care when you get older, there’s something you can do right away to prepare: buy long-term care insurance.

There are many types long-term care insurance to choose from. One you might consider, especially if you have a family, is long-term care insurance with linked benefits, which combines long-term care coverage with a traditional death benefit like a life insurance policy.

Are you ready to get long-term care insurance? Start shopping for a policy now.

Should I buy a long-term care insurance plan with linked benefits?

There are many reasons why you should get a long-term care insurance plan with linked benefits – also known as a hybrid long-term care insurance plan – makes sense. Here are some of the reasons why you might consider getting this type of policy:

It can help your family

Aging isn’t the only expensive thing in America. Dying is also expensive, from funeral costs to dealing with probate. And a linked benefit plan can give your family the money they need to handle all those expenses.

“Linked benefit plans combine long-term care insurance with life insurance, providing broader coverage and greater flexibility, usually at a slightly higher cost because you’re insuring multiple risks,” says Jeff Belligotti, vice president and head of long-term solutions for care at New York Life. “But this type of policy also ensures you can leave a legacy for your loved ones as they include a death benefit.”

Some linked benefit plans provide a death benefit no matter what; others give your family what’s left of your long-term care fund, meaning if you use this type of coverage, there’s a chance there won’t be any death benefits left for them. Talking to your insurance agent can help you determine which plan is right for you.

Find a long-term care insurance policy that works for you.

Many types of long-term care are covered

As with any other long-term care insurance product, there are many services you can pay with a linked benefit plan. If you need full-time care in a nursing home, you will be able to pay for it. If, on the other hand, you can remain independent but want to be in a community where help is available, you can pay for assisted living. You can also have your benefits pay for home care, hospice care and occupational therapists.

Some plans even allow you to pay your family members if they spend time caring for you. Again, make sure you talk to an insurance agent or other advisor to get the plan that will work best for you.

Simplify your insurance

Long-term care insurance is important. Life insurance it’s also important, especially if you have a family to take care of. While you could certainly purchase two separate policies, purchasing a plan with linked benefits will allow you to combine the two policies into one, making your life a lot easier.

This type of plan also means you don’t pay unnecessary insurance premiums if you don’t end up needing long-term care.

“Linked-benefit long-term care plans are more flexible because they give you long-term care coverage if you need it, life insurance if you don’t, or a combination of the two,” Belligotti says. “You pay for a period and it offers a money-back guarantee.”

The bottom row

A long-term care insurance plan with linked benefits provides money for long-term care and a death benefit for your family after you pass. This type of plan can be a great option if you want to leave some money to your family to offset the costs of your death while still offering long-term care coverage. Every policy is different, so just make sure you know the details of what you’re buying.

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