What Is Asset Based Long Term Care Insurance? 
Asset Based Long Term Care provides a unique solution to providing for the expense of long term care while at the same time providing other benefits . Generally , it is provided with a base of life insurance or an annuity . One of the problems with traditional Long Term Care Insurance is affordability . Also the underwriting is very strict . Because Asset Based Long Term Care is underwritten much like a life insurance policy , it is usually easier to qualify . Many traditional Long Term Care policies are use it or lose it , although many policies do have return of premium provisions . With Asset Based Long Term care written with a life insurance chassis , if you do not use the long term care provision , you beneficiaries will receive the death benefit , as in a traditional life insurance policy . If the plan is Annuity based , you receive the interest and tax advantages of an annuity , but the flexibility of utilizing the funds for long term care should you need it . While most of these hybrid products are not as comprehensive as traditional long term care they can be a great alternative depending on the goals and personal situation of the client . 