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Long-Term Care Insurance Division WAEPA is a non-profit association, governed by federal employees who serve on a voluntary basis, providing insurance benefits to civilian federal employees since 1943. |
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If you have the need for both permanent life insurance and long-term care insurance, you may want to consider a combination product that will provide both. We offer products from several insurance companies that will provide a death benefit to a beneficiary or will allow you to access the death benefit if you were to need help with activities of daily living such as bathing, dressing, eating, continence and transferring or if you need substantial supervision because of a cognitive impairment. The policy will cover actual expenses up to the monthly maximum benefit for skilled, intermediate, or custodial care in the setting of your choice: at home, in an adult day care center, hospice facility, nursing home, or assisted living facility.
What are the advantages?
- You can use all, some or none of your life insurance benefit to help cover your long-term care costs, should the need arise.
- It provides more convenience having only one premium and one policy.
- Any portion of the life insurance policy that you don’t use for long-term care expenses will be paid as a life insurance benefit to your beneficiaries.
- Less expensive than buying separate long-term care and permanent life insurance policies.
- Depending on the type of policy purchased, your premiums can be guaranteed to remain level for the life of the policy.
- Flexible long-term care benefit options allow the full amount of the death benefit to be used for top-quality long-term care in the setting of your choice.
- The cash value from other policies could be used to reduce the premium for the combination product.
What are the disadvantages?
- The long-term care coverage is not quite as comprehensive as most stand-along long-term care insurance policies.
- The premiums will be higher than a stand along long-term care policy because you are purchasing a life insurance product with a long-term care coverage rider. Also, because you are being underwritten for both life insurance and long-term care scenarios, the underwriting is more stringent which may result in higher premiums.
- Someone that has a need for both permanent life insurance and long-term care insurance.
- Someone that is in good health and can get through the more rigid insurance underwriting.
- Someone that wants to ensure that they get something from the insurance company, whether it is paid in a long-term care benefit, death benefit or a combination of both.
- Someone that is concerned about potential rate increases with a stand along long-term care insurance policy.
Hypothetical Examples*
Example 1
A male, age 55, preferred non-tobacco
Life Insurance Death Benefit: $500,000
Long-Term Care Benefit: up to $20,000 per month until death benefit is exhausted ($500,000 in total long-term care benefits).
Annual Premium: $6,682 per year
Example 2
A male, age 55, preferred non-tobacco
Life Insurance Death Benefit: $300,000
Long-Term Care Benefit: up to $12,000 per month until death benefit is exhausted and an addition $12,000 in long-term care benefits per month for up to an additional $300,000 in benefits beyond the death benefit ($600,000 in total long-term care benefits).
Annual Premium: $5,684 per year
Example 3
A male, age 55, preferred non-tobacco
Life Insurance Death Benefit: $500,000
Long-Term Care Benefit: up to $20,000 per month until death benefit is exhausted and an addition $20,000 in long-term care benefits per month for up to an additional $500,000 in benefits beyond the death benefit ($1,000,000 in total long-term care benefits).
Annual Premium: $9,393 per year
*Examples shown are hypothetical and are only shown to give a general idea of the concept. Please contact us directly to receive detailed information and quotes pertaining to your particular situation. This type of rider may not be available in all states.