Permanence. That’s the beauty, many say, of purchasing whole life insurance. As long as your clients pay the premium, which always stays the same, they essentially don’t have to worry about their policies. They’re guaranteed a specified cash value, death benefit and level premiums that never change.
Now with long-term care riders added to whole life policies, the coverage is even better. Customers can enjoy all the advantages of permanent life insurance, but they also receive a benefit that helps safeguard their assets in the event they need home health care or nursing home services for an extended period of time. And the price of adding a long-term care rider is less expensive than purchasing long-term care insurance.
Today, purchasing whole life insurance with a long-term care rider still makes a lot of sense. This flexible, add-on coverage expands the use of life insurance, making it more valuable to your clients and opening the door to more sales for you.
Support during challenging times
Though most people think of long-term care insurance as something they need only when they’re much older and in need of a nursing home, your clients could need long-term care services at any age. Roughly 40 percent of long-term care is provided to people under age 65 who need help taking care of themselves due to diseases, disabling chronic conditions, injury, developmental disabilities and severe mental illness.
Consider this example: Eric and his wife, Lisa, work full-time jobs to support their two children. The couple recently purchased a new home to accommodate their growing family. After a serious car accident left Eric with a broken hip and several cracked ribs, he needed a home health care professional for three months to provide medical assistance while he recovered.
Fortunately, Eric owned a whole life insurance policy with a $100,000 death benefit and a long-term care benefit rider. He received a 4 percent monthly payment from the death benefit of his policy that helped pay for his long-term care medical costs. Eric received $4,000 for three months to pay for his medical care, which left him with an $88,000 death benefit. Without this coverage, Eric would have had to pull money from his savings account or borrow money from his family. The cost of long-term care