Life Insurance Exchange for Long Term Care Insurance
Last updated: February 28, 2017 at 20:48 pm
Perhaps your current situation indicates your life insurance policy might be more beneficial to you if it was a long term care insurance policy. If so, you could have some options to consider as you may be able to perform a tax-free 1035 exchange of your life insurance policy for a long term care insurance policy. And, you’ll never have to pay taxes on the gains because long term care benefits are not taxable.
Genworth Financial is one company that has long term care insurance options allowing a partial exchange of your life insurance to pay for your long term care insurance premiums. Another option would be to exchange your life insurance policy for one that combines life insurance with long term care protection. This type of policy provides a pool of money that can be used as either a death benefit or long term care benefit. If you don’t end up needing long term care then your estate will receive the death benefit. Either way, protecting yourself from the high cost of long term care is an important part of retirement planning.