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This is an option I'm just learning about & I'm curious. Any pitfalls? (I've talked to a company that brokers this type of deal, but I am pretty sure they won't share the downside.) Thanks for any advice/experience you might care to share.

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see "How to Use a Life Insurance Policy to Pay for Long-Term Care" on this site.
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The Pension Protection Act of 2006 added additional flexibility to Internal Revenue Code 1035. Applying these concepts allows annuity contract owners and life insurance policy owners to purchase a new product by using the money inside of their old products...

Aaron S., AIF, CFA, MBA
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Combination Life and Long Term Care Insurance policies provide long term care benefits if you need long term care or a death benefit if you die without needing long term care; or both. Combination policies provide guaranteed benefits with guaranteed rates (your rates can never be increased). This link provides an example of a Combination policy with Lifetime Benefits:

Aaron S. AIF, CFA, MBA
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I'm curious about this as well. Hope this will bump us to the top.
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Hi Pam and Blannie, yes, I learned about the option via this site. I am hoping someone will chime in with a personal experience. Thanks and happy holidays!
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For someone who already needs care and doesn't have LTC insurance, it's a great idea to convert their life insurance policy into a stream of income to help pay for the cost of their care.

The problem is that most life insurance policies owned by seniors today have too low of a death benefit. The conversion doesn't generate very much cash flow.
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