A basic LTC policy covers the potentially catastrophic cost of a long-term stay in a nursing home. Comprehensive LTC policies include coverage at home, in adult day care and at assisted-living communities. These kinds of policies especially appeal to older buyers. The newest approach adds LTC coverage to cash-value life insurance. Bryant Quinn columns Jane Bryant Quinn welcomes letters on money issues and problems but cannot offer individual financial advice.
Women are more likely to face long-term stays than men.
For example, you might own a lot of real estate or a closely held business. Your family will need cash after your death, while untangling your illiquid assets. The withdrawals are tax-free. At death, your beneficiaries get whatever remains of the insurance. As far as I know, all the combos involve cash-value insurance, not term insurance.