Most people are aware that life insurance policies usually have a death benefit, which beneficiaries can use however they see fit. However, some may be surprised to learn that, depending on policy type, a plan can also provide income for people while they are alive.
Such a policy may prove beneficial, especially when it comes to paying for medical care later in life. Even those with Medicare and savings may find they come up short when it comes to covering expensive medical bills. In fact, Medicare does not cover services that assist people with in-home care. The insurance only provides coverage for nursing facilities.
Life and Health Insurance Foundation for Education board member Deb Newman says consumers should consider purchasing long-term care insurance.
"Despite reports from the federal government that 70 percent of individuals over age 65 will require some long-term care services during their lifetime, most Americans do not have a realistic financial plan in place to pay for the care they are likely to need," says Newman.
People should consult their loved ones to help determine a plan as to how they will pay for long-term care should it be needed.