Here are some alternatives.
Have you considered purchasing Long Term Care (LTC) Insurance, but shied away because of the cost? Perhaps you are as concerned about NOT needing LTC and “wasting” all those premium dollars as you are about needing it. This is a common dilemma. One solution is to use a life insurance product that covers long term care expenses. There are two ways to do this:
1.) An Accelerated Death Benefit (ADB) Rider on your Policy
You will pay an additional premium. Typically the accelerated benefit payment amount is capped at 50 percent of the death benefit, but may be as high as the full death benefit. For ADB policies that cover long term care services, the monthly benefit you can use for nursing home care is typically 2% of the life insurance policy’s face value. If included in the policy, the amount available for home care is typically 1%.
2.) A Hybrid Product
Hybrid products are relatively new and the features are changing as the product evolves, but the concept is that policy benefits will always be paid, in one form or another, prior to death as LTC benefits or after death to your designated beneficiaries. It is easier to qualify for a hybrid product than a typical LTC policy, and certainly less expensive than traditional life insurance plus LTC insurance.
But there are caveats:
Always consult an independent life insurance agent. You may be able to convert existing policies into one with a long term care benefit.