Ask Terry Questions LTC/Death Benefit Combo?

LTC/Death Benefit Combo?

By Terry Savage on June 10, 2013 | Financial Planning / Retirement

Our Financial Advisor is recommending to my wife and I that we purchase a LTC with a Death Benefit Protection feature. My wife and I are both 55 years old. The cost of this policy to each of us is $75,000. We both feel that this is very expensive and would appreicate your comments or opinion about this type of policy.

SAVAGE SAYS: Well, actually this is an interesting new concept in covering the costs of Long Term Care Insurance. So many people pay premiums and never use the coverage. This is a cash investment in a life insurance policy, that allows the cash value to be leveraged (and withdrawn) to pay for LTC expenses. If you never use the policy to pay for long term care, then your heirs get the death benefit from the life insurance portion.

Now, I don’t know the specifics of the policy your advisor is recommending. But I can send you to the websites of the two largest companies offering this type of policy, and you can see what the costs are, and what type of coverage you could get — maybe do a comparison with the policy your advisor is recommending. Go to or

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