As the Baby Boomer generation ages, it’s more important than ever that Americans make plans for extended medical care and/or assisted living. In fact, 70 percent of all 65-year-olds should anticipate using some kind of long-term care in their lives, according to the United States Department of Health and Human Services. While standalone long term care insurance is often prohibitively expensive, packaging a long-term care rider into your life insurance policy can be far more cost-effective.

Another reason to consider including this benefit in your life insurance policy is that if you buy standalone long-term care coverage and never need it, you lose the premiums you paid for years on it. On the other hand, when long-term care is part of your life insurance coverage, benefits will likely go to your loved ones after you are gone.

Retirement advisor Joseph Lucey tells the Wall Street Journal that one of the biggest advantages of life insurance with a long-term care option is that it creates “a tax free bucket.” Invest that money elsewhere, such as stocks or real estate, and you will eventually be faced with paying hefty taxes just to access the funds. If you suddenly need long-term care, because of an unexpected illness or accident, you could find yourself in a tough spot.

“When families don’t make any plans for long-term care, all of a sudden they’re in a situation where they’re liquidating IRAs and paying huge taxes, and the markets aren’t always going to work on their side,” Lucey tells The Journal.

If you need life insurance you should look at long term care riders to see if it can be a cost effective solution to help pay for long term care cost and needs. An Alternative to LTC riders and life insurance can be looking into living benefits riders such as chronic illness and critical illness which can also help supplement the cost of long term care needs.

Transamerica has a great life insurance policy that offers living benefit options and they are included in the policy. When you think of living benefits you should think of a policy that would pay cash if you have a heart attack, stroke or get diagnosed with cancer. It can help pay deductibles and cover your bills if your unable to work.  That is exactly what living benefit polices do.

You could also consider a combination of life insurance with a LTC rider and living benefit riders which can really supplement your golden years.

If you been thinking about how you could prepare for a situation where your age and/or health might prevent you from looking after yourself and you may require assistance, then we can help build a plan that will help protect your family finances and give you the care you deserve.  Millions of Americans, at some point or another, will care for someone who is sick or aging, this doesn’t mean that the act of doing so will come without expense.

No one wants to become a burden to their family, even though it’s likely that loved ones wouldn’t give a second thought to helping you in a time of need. With that being said, becoming a full or even part time caregiver does cost money and a significant amount of time. Some people will sacrifice their careers and even put up some of their own money to help those they love.

If you are interested in investing in life insurance with long term care, get a quote from one of our Agents today.