Live, Die or Quit is a tag-line we have been using when marketing Long Term Care riders on many of our popular universal life policies. While none of the options really sounds good when you are talking about your life, they are actually good options when you are looking at your life/long-term care insurance.
For years, our industry has been preaching about the need for LTC coverage and more recently the news media has begun to give more coverage to the need. People are living longer and they chances of them needing LTC insurance increases the longer you live. However one of the big draw backs for LTC coverage was the fact that it was a “use it or lose it” premium and people seemed to be willing to gamble. Use it or Lose it is no longer an issue if you look at the riders that you can put on life insurance. While these riders are NOT as benefit rich as an individual LTC policy, they do provide coverage should the need arise.
If you ask me which type of coverage I would choose, I would take the rider on a life policy every time. Why? My father had an individual LTC plan with a large carrier for 15yrs and died without ever receiving a penny from his LTC policy. His policy was never used because he did not meet the requirements to trigger the LTC coverage before his death. If he had the choice when he bought the LTC policy, I am sure he would have gone with the rider too. However, it was not available then but it is now.
LTC riders on life insurance take care of the “use it or lose it” argument because you will use it whether you Live or Die. Where does the quit part come in? There are a few carriers that will allow you to get all of your premiums returned in the future should you decide you no longer want or need the coverage. Therefore you now have some pretty compelling reasons to buy life/LTC coverage since you are going to able to use it Live, Die or Quit!
Don’t wait until it is too late…3 in 4 need more and that includes you!!