Due to advances in the medical field, many Americans are living much longer than they did just a few years ago. With a longer life expectancy, long-term care sometimes becomes more of a priority than life insurance. So, what happens when you’ve invested in life insurance, but you need long-term care now? Depending on your insurance policy, you may be able to use your life insurance to pay for your long-term care.
Using Your Accelerated Death Benefit
One popular feature found in many whole life insurance policies is the accelerated death benefit (ADB). The accelerated death benefit lets policy owners use their death benefit while they are alive if they have a qualifying event. Some ways you can use your life insurance to pay for your long-term care include the following:
- You have a terminal illness
- You require long-term care
- You have a life-threatening illness
- You are required to stay in a nursing home
Each situation may trigger your ADB. In order to take advantage of this feature, you must contact your insurance agent to discuss your options.
Sell Your Life Insurance
Another way you can get money to pay for your long-term care insurance is by selling your life insurance policy. Start by contacting your life insurance provider to see if they are willing to purchase the policy from you. If they are not, there are legitimate companies that purchase life insurance policies. Each company you approach will offer you a different settlement, so it’s important that you shop around to get the best rate for your policy.
Purchase a Life Insurance Policy that Pays for Your Long-Term Care
Many insurance providers recognize that many people have to choose between long-term care insurance and life insurance. In an effort to provide their customers more diversified products, insurance providers have developed a life insurance policy that also helps customers cover the costs of long-term care. With this product, you don’t have to choose between life insurance or long-term care since the odds are you may need both.
Before you determine the best option for you, you should speak to your insurance agent to determine what options are available. You may be surprised to find that your life insurance policy covers your long-term care.
Prepare for your future. Call McCallum Agency at (440) 899-2700 for more information on life insurance.