LTC insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.
LTCI long-term care insurance requires medical underwriting so it’s best to buy one when you’re healthy. Traditional LTC normally has a lower premium but it may increase over time. It provides no death benefit. Many consumers are reluctant to buy this type of insurance because they fear that their investment will be wasted if they do not use it. Therefore, some insurance companies have attempted to solve this problem by combining life insurance with long-term care insurance.
The death benefit can be used tax-free in advance to pay the cost of LTC and the unused balance will be paid out as a death benefit to your beneficiary. Premium normally stays the same.