The general assumption is that health insurance in Amarillo, TX will cover long-term care at home, a hospice, or another facility. When policyholders mention this to us, we sadly break the news that health insurance will not cover long-term care. To the delight of policyholders, we tell them that a life insurance policy could cover the cost instead.
Does life insurance pay for long-term care?
Securing long-term care coverage depends on your life insurance policy and carrier options. Most pay for long-term care, but few include it automatically. Some carriers offer long-term care as an add-on rider. Others offer long-term care insurance, a standalone policy separate from life insurance. The rest offer hybrid life insurance. It combines life insurance and long-term care insurance into one policy. An agent at Nest Insurance Agency will discuss your carrier’s options.
Are there alternative solutions that pay for long-term care?
If your policy doesn’t offer or deny long-term care, there are other options. You can surrender your life insurance policy to us for the policy’s cash value. You could sell your life insurance policy to a third party for the policy’s market value. A third option is to borrow funds from the policy’s value as a loan. Another option is transferring the life insurance amount to a long-term care insurance plan. That is a 1035 exchange. There may be other options depending on your policy, but you must stop by our Amarillo, TX, office to find out.
At Nest Insurance Agency, we prepare for gradual and sudden occurrences because we don’t know what our policyholders need until they tell us. With long-term care being an unexpected occurrence, our team is ready to review your policy, coverage options, and alternative solutions to help you through this difficult time. Let us focus on insurance while you focus on getting your loved ones or yourself through the day. Contact us for more information.
