In Canada, you cannot convert your term life insurance policy into a Long Term Care Policy. However, some critical illness and disability policies allow conversion. The amounts allowed without having to submit proof of instability could be as much as all of the critical illness policy or up to a specified maximum for the disability policy.
The conversions are are allowed usually within an age for example 55 to 65 range and vary by company.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
No, because life insurance is legally different than long-term care insurance from a state regulation perspective. But... many life companies are now offering in some states what's known as "living benefit riders" which are a liberalization of the old "accelerated death benefit" riders. The new living benefit riders essentially permit a pre-death cash payout of some amount of the life insurance policy amount if you become what's called "chronically ill. This generally means unable to perform 2 of 6 daily activities of living. Bottom line? Pre-death cash payouts from such riders can be used for long-term care, medical care or any purpose. We now recommend these riders to every life insurance applicant because they can provide a lifesaving injection of cash to a family in need and are an alternative to costly long-term care insurance. Best of all, they are free or cost only very little extra.
Great question! Unfortunately, those are two entirely separate kinds of vehicles. Think of it like trying to convert an apple into an orange. To convert your term policy to a whole life, that you could do, and vice versa. But I don't know of a single company that will convert from one vehicle to a different class of vehicle. If you would like more information, please contact me. Thanks for asking!
Term Life Insurance can sometimes be converted to help pay for long term care expenses through a program called Long Term Care Benefit Plan. The same is true for Whole Life, Universal Life, and Group Life Insurance.
When someone is applying for Medicaid, they may find that their cash value policy has too high a face amount, and must be surrendered. Others facing the need for long term care may have Term coverage they no longer need.
The Long Term Care Benefit Plan uses a formula of the face amount of the policy, the premiums being paid, and the health care needs of the policy owner to determine how much can be paid monthly to the institution or person providing that care. It also allows a small percent of the death benefit to stay in effect for funeral costs.
The conversion does not change your Life Insurance to Long Term Care Insurance. Rather, the money is placed into an irrevocable account that is professionally administered.
Long Term Care Benefit Plans are legal in all 50 states, and can be used with policies that have been in force over two years.
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The conversions are are allowed usually within an age for example 55 to 65 range and vary by company.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
When someone is applying for Medicaid, they may find that their cash value policy has too high a face amount, and must be surrendered. Others facing the need for long term care may have Term coverage they no longer need.
The Long Term Care Benefit Plan uses a formula of the face amount of the policy, the premiums being paid, and the health care needs of the policy owner to determine how much can be paid monthly to the institution or person providing that care. It also allows a small percent of the death benefit to stay in effect for funeral costs.
The conversion does not change your Life Insurance to Long Term Care Insurance. Rather, the money is placed into an irrevocable account that is professionally administered.
Long Term Care Benefit Plans are legal in all 50 states, and can be used with policies that have been in force over two years.