At least 70% of people over 65 will need long term care services at some point.1 RiverSource® insurance offers two life insurance solutions to help with long-term care expenses. Both provide:
This type of protection include an option to use the policy’s benefit for income tax-free long-term care benefits and the policy’s death benefit will be paid income tax-free to your beneficiaries if you do not need long-term care. For an additional cost there is also an option at the time of application to extend the long-term care benefits once all of the policy’s death benefit has been used.
This product is ideal if you have assets to reallocate to pay a single premium and it gives you the option for greater long-term care benefits than a universal life insurance policy with a chronic care rider. In addition, if you change your mind or your situation changes you can get your money back.2
Another approach is to consider a permanent life insurance policy with a chronic care rider (for an additional cost). This gives you different choices for life insurance coverage along with the option to accelerate a portion of the death benefit to help pay for long-term care expenses should you become chronically ill.3
This option generally provides more emphasis on the life insurance benefit and allows more flexibility around the timing and amount of premium payments. It also provides an income tax-free death benefit to your loved ones after you are gone as well as the opportunity, depending on the life insurance product selected, to accumulate cash value in the policy tax deferred.
1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services Revised November, 2012
2 Return of premium (ROP) is 90% in years 1-2 and 100% ROP in years 3 and later and is net of any partial surrenders, outstanding policy loans or long-term care benefits paid.
3 When the policy’s death benefit is accelerated for chronic care expenses, the death benefit and the cash value are reduced proportionately.
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