Life insurance and long-term care insurance are typically used for different aspects of financial planning. Life insurance is intended to provide financial support to beneficiaries after the policyholder’s death, while long-term care insurance helps pay for extended medical care as individuals age.
Some insurers now offer policies that combine these two types of coverage. Universal life insurance policies with a long-term care rider allow policyholders to use part of their death benefit to cover costs such as nursing home care, assisted living, or home health services if needed during their lifetime.
One example is the Transamerica Universal Life with Long Term Care Rider, which offers both simplified issue life insurance and long-term care benefits. According to the company, “With the Restoration Rider, the life insurance benefit pays out even if you use the long-term care benefit.”
The death benefit can help protect loved ones financially after a policyholder passes away. It also provides access to funds for long-term care needs—expenses often not covered by standard health insurance plans. As stated in materials about the product: “Planning for long term care can be one of the most important decisions you can make, and it’s a gift for your family, too.”
Key features highlighted include no requirement for medical exams or blood work to qualify, guaranteed death benefit protection, cash value accumulation accessible during the insured’s lifetime, and waiver of premium payments in cases of layoff or strike. The plan also allows convenient payroll deduction payment options.
Universal life insurance differs from traditional term life policies because it includes three components: a death benefit, a cash value account that grows over time, and flexible premiums. This structure allows policyholders to adjust coverage amounts and premium payments as their needs change.
A notable feature is the Long Term Care (LTC) Rider. This optional add-on provides monthly benefits equal to 4 percent of the death benefit amount for nursing facility or assisted living expenses and 2 percent for home health or adult day care costs. For instance, with a $100,000 death benefit, up to $4,000 per month could be paid toward nursing home expenses or $2,000 per month toward home health services.
Another included option is an Accelerated Death Benefit for Terminal Condition Rider at no additional cost. Policyholders diagnosed with a terminal illness may access up to $150,000 or 75 percent of their death benefit early.
If all available long-term care benefits are used up during an insured’s lifetime, an Extension of Benefits Rider continues coverage while preserving some portion of the remaining death benefit for beneficiaries.
This universal life policy is offered specifically to full-time practicing members of the Colorado Medical Society with face amounts starting at $25,000. Premiums vary depending on age and selected coverage level.
Enrollment is currently open; further information about options and estimated costs versus benefits can be found at https://enroll.buddyins.com/cms.
