Information on Asset Based Long-Term Care

There are numerous people who have no idea what this type of long-term care is after all few are able to have this type of care and currently a majority of Americans do not have the assets that are needed.

Long term care

Basically, “asset based long term care”, also known as” linked benefit long-term care”, implies a policy of life insurance offering tax-free LTC or living benefits in addition to, or in some cases in place of a death benefit. So, this policy often pays just one benefit and these are either:

  • Long-term care
  • Death
  • Or a lesser combination of the two


This is not your traditional long-term care but rather is an alternative to self-insuring since benefits are paid from an asset such as death benefits that in most cases would go to heirs after a person dies. The majority of these buyers welcome the fact that if the insured never need any type of custodial care, their heirs receive the policy death benefit. On the other hand, while collecting long-term-care benefit payments, the death benefit also is being steadily reduced and ultimately will go to zero when all or most of the available long-term-care is paid out.

Choice of provider

There are some policies that allow the owner to choose any care provider – such as a family member – while others will need a licensed caregiver such as a registered nurse.

Certain cases

There are cases where benefits are able to be arranged in order to pay out if either spouse meets the LTC trigger. While deduction for taxes is-available for this” linked benefit policies” and the benefits in most cases pay for long-term-care products so the policy owner is also tax-free.


Premiums for these long-term-care policies are higher than those of traditional LTC since a death benefit will be paid even if long-term-care is never generated. If you are interested, research to find more on the internet.