A report says an increase in demand for linked-benefits coverage - including long-term care coverage - may have spurred a dramatic increase in the sales of combination life insurance.
The policies allow consumers to add the standard benefits of a life insurance policy with additional coverage such as a long-term care benefit. Some also provide consumers with a chance to invest in whole or universal life insurance along with those added linked benefits, experts say. New data from LIMRA shows combination life insurance sales climbed 62 percent in 2010 from the previous year, registering a total of $1.2 billion in sales that year.
"Overall sales of combination products in 2010 were remarkable, especially coming off the double-digit growth experienced in 2009," said Catherine Ho, LIMRA research actuary. "In addition to carriers boosting their marketing campaigns, consumers' growing desire for an alternative to stand-alone long term care insurance has driven sales of these products. For some buyers, combination products are a more affordable alternative to stand-alone LTCI."
Long-term care insurance has been put on the front burner by many consumers looking to protect their families financially from the costs of late-life healthcare.
Reports show the cost of receiving long-term care can quickly escalate for the average American family, making long-term care coverage critical.