This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Life Insurance Or Long-term Care: Make The Right Pick

In some instances you should hang on to life insurance. For example, heirs might be forced to sell the family business or part of your estate to pay taxes if they don't receive life insurance proceeds. Read more about whole life insurance.

Combining life and long-term care insurance

If you need both life and long-term care insurance, you can buy separate policies or invest in one product that combines benefits.

A life insurance policy with a long-term care rider is one way to go, says Steve Casto, founder and president of Strategic Wealth Solutions Inc. in Omaha, Neb. That option is becoming more attractive as insurers reduce benefits, increase premiums and tighten up underwriting for traditional, standalone long-term care insurance policies, Casto says. Many insurers have gotten out of the long-term care insurance business and long-term care insurance options are dwindling.

MassMutual is rolling out such a rider on one of its whole life products. The rider lets you access up to 90 percent of the death benefit for long-term care. Any portion of that amount you don't use is paid to your beneficiary when you die. If you don't need any long-term care, your beneficiary receives the full death benefit.

"We're seeing a lot of interest," Bates says. "It's not necessarily a replacement for traditional long-term care insurance, but it's a great alternative."

MassMutual will continue selling standalone long-term care policies, Bates adds.

Another option is asset-based life insurance policies -- also called combination or linked policies -- which combine life insurance and long-term care coverage. These policies, such as Pacific Life's Pacific PremierCare or Lincoln Financial Group's Lincoln MoneyGuard Reserve, feature a one-time, lump sum premium, typically around $100,000 or more. They provide long-term care benefits if you need them, or they pay a death benefit to your beneficiary. If you decide you don't want the policy after all, you can get back the money you paid in premiums.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.99 -0.02%
FB $99.54 -0.21%
GOOG $678.11 -0.68%
TSLA $148.25 0.18%
YHOO $26.82 -0.85%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs