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Long-Term Care Needs are Rising — How Allstate Benefits Can Help

A permanent life insurance policy is a great way for an employee to protect their family's financial future after their death. But what happens if they need access to cash before that time? Or if they need funds to help pay for long-term care in the future? A permanent life policy with a long-term care rider can help insureds cover all three possibilities, providing a return on their premium investment no matter where life takes them.

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Long-term care riders provide additional protection should an insured become unable to care for themselves and need long-term care services. This is becoming more common as Americans live longer, age-related health issues become more prevalent, and care becomes more expensive.

One of the top financial concerns of consumers in all age groups is paying for long-term care services as they age, according to the 2021 LIMRA Insurance Barometer Study.1 This is one reason why it is so important to invest in coverage for when it is needed most.

How Long-Term Care Riders Can Help

Long-term care costs can run in the tens of thousands of dollars—or more—depending on the care needs. Without coverage, this care is a heavy burden to bear. According to the AARP, in-home care and assisted living facilities in the U.S. each cost around $51,600 a year, and nursing homes start at about $85,800.2

This puts immense pressure on families to dip into savings or work extra jobs to pay for loved ones' care. By utilizing their life insurance policy's long-term care rider, they can access their death benefit and receive a monthly advance to help pay for qualified long-term care services, whether in a facility or at home. The most common—and affordable—option is in-home care, making it a great way to make cash benefits go further and allow insureds to receive care in the comfort of their own home.

If the long-term care rider on their policy is never needed, they will still be eligible for one of the other potential benefits: either a lump-sum cash benefit for their beneficiaries when they die, or tax-advantaged cash value that builds over the life of the policy. The cash may be used to help pay for retirement or emergencies. No matter what path life takes, insureds get a benefit from the investment.

How is This Different from Long-Term Care Insurance?

As the name suggests, long-term care insurance pays a benefit when a person needs care for an extended period. However, insureds only receive a benefit if they qualify for long-term care (with no cash value or death benefit for their loved ones). Also, unlike individual long-term care insurance, benefits from a long-term care rider are part of a group policy, which can offer more affordable premiums.

Types of Policies with Long-Term Care Riders

Allstate Benefits offers long-term care coverage (Accelerated Death Benefit for Long Term Care Rider) with our Group Universal Life and Group Whole Life insurance products. In addition to the advantages above, coverage is also portable, so the insured can maintain the coverage as purchased even if they leave their employer.

Any long-term care benefits will require some qualifications, including certification by a licensed health care practitioner that the insured needs assistance with daily activities like dressing, bathing and eating. Certain limitations may apply and a 90-day elimination period is generally required before benefits can begin.

Learn more about our life insurance products.

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