Long Term Care Insurance with Lifetime Benefits
Long Term Care Insurance with Lifetime Benefits
Most long term care insurance policies have limits—covering benefits for 3, 5, or 7 years. But what if you need care for much longer? With lifetime benefit options, your coverage never runs out, no matter how long you require assistance.
At Diversified Insurance Brokers, we help clients compare Long Term Care insurance with lifetime benefits so you can feel secure knowing you’ll always have protection. These plans provide the ultimate safeguard against exhausting your benefits during extended care needs.
What Are Lifetime Benefits?
A lifetime benefit rider means your LTC policy continues paying as long as you qualify for care. Whether you need care for 2 years or 25, you’re covered.
Benefits of Lifetime Coverage
- Unlimited Duration: Protection that never expires.
- Peace of Mind: Removes the worry of outliving benefits.
- Asset Protection: Keeps retirement funds intact for spouses and heirs.
- Ideal for High-Risk Families: Especially valuable for families with Alzheimer’s, dementia, or chronic illness history.
Who Should Consider It?
- Individuals with significant retirement savings to protect
- Seniors concerned about extended care needs
- Couples where one spouse may require years of care
Cost Considerations
While lifetime benefit options have higher premiums, they provide unmatched protection. For many, the peace of mind is worth the additional cost. Hybrid plans that combine life insurance or annuities with LTC benefits may also offer more affordable alternatives with extended coverage options.
Explore Lifetime Long Term Care Insurance Options
Protect yourself against the risk of extended care costs with coverage that never runs out.
Questions? Call 800-533-5969
FAQs: Long-Term Care Insurance with Lifetime Benefits
What does “lifetime benefits” mean in a long-term care policy?
“Lifetime benefits” means the policy will continue to pay out for qualifying long-term care expenses for the rest of your life, or until the benefit pool (or limit) is used up, rather than having a fixed benefit period (e.g. 3, 5, or 10 years).
How is this different from a standard LTC policy?
Standard LTC policies typically limit benefits to a certain number of years. A lifetime-benefit policy offers greater security, but often comes with higher premiums because the insurer is assuming a longer duration of payouts risk.
Who should consider a LTC policy with lifetime benefits?
People worried about outliving their LTC coverage, seniors with family history of long-term illness, those with financial resources who can afford the increased cost, and anyone who wants peace of mind that coverage won’t end if needed late in life.
What are the trade-offs?
Higher lifetime benefits cost more in premium. There may be exclusions, waiting (“elimination”) periods, or higher age at entry requirements. Also, policies may limit monthly benefit amounts even though duration is for life.
How do premiums vary compared to limited-duration LTC?
Premiums are usually substantially higher for lifetime benefit policies, especially if you purchase at older ages. Also, premium stability, inflation protection, and benefit size all impact cost significantly.
Are there hybrid or linked life/LTC options with lifetime benefits?
Yes. Many hybrid policies combine life insurance with LTC benefits, some with lifetime benefit periods or lifetime benefit pools. If the LTC benefit is never used, beneficiaries may still receive death benefits.
What should I check in the policy details?
Important items include: elimination/waiting periods, monthly benefit limits, whether benefit inflation is included, definitions/conditions of qualification (e.g. number of ADLs or cognitive impairment), whether the lifetime pool is capped, whether premiums are guaranteed, and financial strength of insurer.
How does inflation protection interact with lifetime benefits?
Inflation protection ensures benefits grow over time to keep up with rising care costs. If you have lifetime benefits, adding inflation protection greatly increases total expected cost, but it’s often very valuable because care costs tend to increase substantially with age.
Will age or health status limit my eligibility?
Yes. Insurers typically have age limits (above which they may not issue lifetime-benefit policies), and health underwriting matters more. Pre-existing conditions, cognitive decline, and functional limitations may lead to higher premiums, rating classifications, or even decline.
What happens if I never use the LTC benefits?
If you never need long-term care, with a hybrid policy you may still pass death benefit to your beneficiaries. With a pure LTC policy, you may receive nothing—but sometimes there are “return of premium” or “unused benefit” riders or features.
