Sun Life Financial has announced their US based business unit will begin offering a whole life policy that allows the policy owners to use the benefits toward long-term care. The insurance benefits can be applied to the typical in-home and nursing home costs that long-term care coverage generally covers.
Current estimates show that over 65% percent of US citizens will need some form of long-term care in their lifetimes, including assisted living, bathing, driving, and help with day-to-day activities. With an aging population and the beginning of the baby boomer generation approaching their golden years, the demand for long-term care is expected to increase dramatically.
The insurance policy will pay a cash benefit to the policy owner should the need arise during their lifetime. If the insured does not use the long-term care benefit, a death benefit will be paid to a beneficiary, according to Sun Life.
Sources close to the company claim that this product will offer many advantages over a typical long-term care policy that will only pay a benefit if someone files a claim for long-term care. With a life insurance and LTC combination, a person can pay one premium and still provide a death benefit for a beneficiary.