But in either case, you might be able to benefit from a long-term care insurance policy, or possibly a long-term care rider
attached to a life insurance policy.
It is based on formulas and employee classifications, instead of lengthy medical questionnaires and exams, and is now able to offer the only true long-term care rider
in a Guaranteed Issue Program.
Protection UL, its bestselling product since 2011, is a universal life policy that can include a long-term care rider
Less well known and potentially more responsive to this particular estate planning need are life insurance policies that allow the insured "to collect now, die later." Developed in the last two years and currently offered by less than a dozen insurance carriers, (5) these policies are technically life insurance policies with an inexpensive long-term care rider
that pre-pays the life insurance death benefit in monthly installments at the time the insured requires long-term care.
Eleven percent said they d purchase a long-term care rider
on a life insurance policy; 8 percent said they d have family members provide their care and 7 percent said they d spend down assets to qualify for Medicaid and enter a Medicaid-approved facility.
To further sweeten the compensation pot for top employees, he notes, a company might offer a hybrid form of life insurance policy that comes with some kind of long-term care rider
or feature that provides the policyholder with tax-free cash to cover long-term care expenses.
We've all seen advertising that sort of goes like this: "If you think LTCI is too expensive, then you should be looking at this life insurance policy with a long-term care rider
I am usually able to show them a solution by exchanging the current policy to a new one with the long-term care rider
, assuming they are able to be approved health-wise.
The IRS recently ruled that benefits received pursuant to a long-term care rider
attached to a single premium deterred fixed annuity may be excluded from gross income because the rider can be treated as an insurance contract under IRC Section 7702B.
Long-term care rider
: Pays a monthly benefit to clients who receive home care or care in a nursing home--a good solution for clients who don't think they need long-term care insurance.
It's purchased the same way as a universal life policy, and it includes a long-term care rider
provision and a death benefit if you end up not needing that long-term care.
Annuity with long-term care rider
. In a private letter ruling, the Service analyzed the federal income tax treatment of a long-term care insurance rider to be offered with certain annuity contracts by an insurance company with respect to taxable years beginning after December 31, 2009.