Some insurance carriers have options allowing a partial exchange of your life insurance to pay for your LTC insurance premiums.
Another option is 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. Eligible policy types for 1035 exchanges are:
- 1035 Exchange Life Insurance to Life Insurance
- 1035 Exchange Life Insurance to Annuity
- 1035 Exchange Annuity to Annuity
You cannot 1035 Exchange an Annuity to a Life Insurance policy.
No matter what type of coverage you choose, protecting yourself from escalating long-term care costs is important for a secure financial future.