Broker Check

Want to be Smarter With Your Money?

Join our mailing list and get news and info to support your financial goals.



Thank you! Oops!
Linked Benefits Life/Long-Term Care Insurance Policies

Linked Benefits Life/Long-Term Care Insurance Policies

August 17, 2023

Imagine you have two needs: taking care of your health and ensuring your family's financial security. Linked benefit life/long term care policies are a way to address both of these needs with a single insurance plan. Some companies offer policies that cover two people with a shared benefit. 

What They Are: These policies combine life insurance and long-term care insurance. Life insurance provides money to your loved ones after you pass away, while long-term care insurance covers the costs of assistance if you need help with daily activities due to aging, illness, or injury.

How They Work: When you buy a linked benefit policy, you pay regular premiums (like bills) to the insurance company. If you eventually need long-term care, the policy can provide money to help cover those costs. If you don't need long-term care, the policy can still pay out a death benefit to your family when you're gone.

Pros:

  • Two Birds, One Stone: You're addressing both life insurance and long-term care needs with a single plan.
  • Guaranteed premiums that do not increase with age
  • Limited Payment options:  can enable you to have a fully paid up policy at retirement. 
  • Money Back: If you never need long-term care, your beneficiaries still receive a payout when you pass away.
  • Some Flexibility: Some policies let you adjust your coverage or access the money in different ways.
  • Ability to cover two lives with one policy: some carriers offer a shared benefit between two people. This can reduce costs.
  • Flexible Premium periods: Some companies offer ten, twenty or paid up at age 65 options. This offers an opportunity to be finished paying premiums by retirement age. 

Cons:

  • Cost: These policies can be more expensive than regular life insurance or long-term care insurance alone.
  • Complexity: Understanding how these policies work might be a bit tricky, so it's important to read the fine print and ask questions.
  • Limited Returns: The growth of the policy's value might not be as high as other investment options.

Remember, these policies can be a good option for some people, especially those who worry about both taking care of themselves in the future and making sure their family is financially secure. But like any financial decision, it's important to do your research, compare options, and consider your personal situation before making a choice. If you're not sure, it's a good idea to consult with a financial advisor to see if a linked benefit policy is the right fit for you.

As independent financial advisors and insurance agents, we represent most highly rated companies offering these policies. Contact us at 352-609-5262 or email david@ifgfl.com for a free consultation and illustrations.