Long-term care insurance is defined as the insured person’s chronic illness, which was first diagnosed by a certified health care practitioner over the past 90 days and has long-term effects on the insured’s illness or physical condition, resulting in the insured:

• Lose at least two activities of daily living* (Activities of Daily Living); or
• The need for care by others to protect the health and safety of the insured is not threatened by severe perceived impairment.

*Daily self-care activities include: bathing, dressing, toileting, action, self-control and eating

For a long time, although everyone knows the importance of long-term care insurance, such insurance is generally unpopular, because the premium has to be continuously paid, and the insurance company reserves the right to increase the premium. In addition, if you are lucky, you don’t need long-term care in your life. Then all the premiums paid were completely wasted.

New long-term care insurance is put into life insurance and becomes an additional guaranteed rider. The advantage of this is that the amount of insurance for long-term care is the amount of life insurance. When the insured person is eligible to claim for long-term care payout, it is equivalent to first taking out the insurance coverage in advance, which can reduce the financial burden of the family. If you are lucky, you don’t need long-term care in your life. If the premium is not paid in vain, the full amount of life insurance will be passed down to the beneficiary.

There are two types of long-term care insurance attached to such life insurance policies: (1) Long Term Care rider, (2) Chronic Illness rider.

The insurance companies that offer the Long Term Care rider are Nationwide and Transamerica, and the compensation is dollar to dollar, but must be paid monthly according to the IRS Tax code for Long Term Care insurance. There are such riders, usually without the Critical Illness rider.

On the other hand, insurance companies offering Chronic Illness riders include AIG, American National (ANICO), National Life Group, etc. This type of compensation can be paid on a monthly basis, but it can also be a lump sum, but the amount of the advanced payout will be reduced according to the severity of the illness.