Asset-Based Long Term Care Insurance
Asset-based long term care insurance, also known as linked benefit, hybrid or combo policies, combine life insurance with long term care insurance.
How They Work for Long Term Care
Linked benefit plans generally consist of two elements::::
Acceleration of the Death Benefit (ADB) - At the time of your long term care claim, you first file against the death benefit
Extension of the Death Benefit (EDB) - Once the death benefit has been fully exhausted (accelerated), the policy will continue to pay an extended benefit under this optional rider
How They Work as Life Insurance
If you never file a long term care claim the death benefit will remain intact and payable to your designated beneficiary just like traditional life insurance.
Because of the cash value built into the life insurance contract you can also surrender your policy for a complete return of premium (with some restrictions).