Financial Planning for Generation X & Y Women
 
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Expert Q&A Archive

08/31/2006
Is there a pay back to relatives for long term care insurance policies?
Is there any kind of payback if you pass away and you paid for long-term care insurance for 20 years? Does your family get any kind of reimbursement?
Barbara Franklin:
expert info »
Some long term care insurance carriers offer a Return of Premium option that assures that premium is returned to a beneficiary if the policyholder dies without using the benefits. There are many variations of this option and they are typically very costly. However, in an effort to attract younger applicants, one of the major carriers has a built-in Return of Premium that pays premium back to a beneficiary if the policyholder dies prior to age 65.
Alyssa Rakovich:
expert info »
some policies can be purchased by putting in a lump sum of money that can be taken back out at any time and also offers a death benefit - you can also make monthly payments to buy long term care with a death benefit but you are paying for the death benefit - You should buy long term care for the peace of mind and a supplement later in life and insurance for the death benefit seperately -talk to a specialist and get lots of quotes from many carriers such as GE, Lincoln, Metlife, John Hancock - find out the daily cost of care in your area and have the professional quote you compounded on that amount and you can get a fair estimate of what long term care insurance costs
Jennifer Lane:
expert info »
There is a return of premium option on long term care insurance as a rider on many of the policies.

Also, there are products that offer a long term care insurance and life insurance combination. The money in the policy can be used for long term.

Care and/or as a death benefit to family. Care should be taken to be sure that the cost of such riders is not prohibitive.
Anne Delle Donne:
expert info »
Some long-term care policies offer a "return of premium" rider where you would receive back your premiums should you never use the policy. This is not available in all policies and should be researched before purchasing any policy. This can be a wonderful benefit for a traditional long-term care policy that before you could only obtain through purchasing an asset based long-term care policy.