Consumers are reluctant to buy Long Term Care policies. They have seen how the industry raised premiums unexpectedly on new and inforce policies. Other folks dislike the “use it or lose it” type of product, where the premiums paid will never be returned unless a claim is made.

If you have decided not purchase a LTC policy, you may want to consider a life insurance policy with a Chronic Illness Rider or Long Term Care Rider. Different riders, but similar goals: providing financial relief to policyholders hit with chronic illness expenses.

These riders are much less expensive than the stand alone LTC policies, and in some cases do not add to the cost of the underlying life insurance.

If a claim is made for chronic illness, than the death benefit is paid to the beneficiary. Further, if the policyholder wants to cancel the insurance, the cash value (if available) can be used as a way to recover premiums paid.

The bottom line is that the premium has now become a double duty dollar; not only covering death, but also chronic illness and potential money back if you cancel.