Asset-based long-term care is a type of life insurance that can be used to help pay for long-term care. If there are funds left after the death of the policy owner, the beneficiaries will receive a death benefit that can help with funeral expenses or to simply help with their personal finances.
How does Asset-Based Long-Term Care Work?
This type of plan works by using a life insurance policy or annuity to fund the asset-based long-term care plan. This plan will then cover certain costs related to long-term care like paying for nursing home or hospice care. If you never end up needing to receive long-term care, the death benefit to your beneficiaries will be much greater.
There are a number of benefits that are associated with using an Asset-Based Long-Term Care plan, however, these benefits will depend on your situation. Possible benefits include:
Traditional LTC may be a cheaper option but compared to Asset-Based LTC, there will be no death benefit paid out and asset-based plans will mostly be funded via a life insurance policy. Otherwise, these two options are quite similar in other benefits including monthly benefits and funding it with excessive assets.
The best time to start looking and funding asset-based long-term care is right now! The younger and healthier you are, the more advantageous long-term care insurance can be for your situation..
If you are wondering if asset-based long-term care is for you, you may want to look into other advance planning strategies to see if other plans would provide a greater financial incentive to you.
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