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Taking the Confusion Out of Linked Benefits

Q: What are Linked Benefits?

A: A Linked Benefits policy is a unique type of life insurance or annuity that combines long-term care (LTC) protection with a death benefit — all within a single policy. Instead of purchasing separate LTC and life insurance coverage, you can protect your assets from the rising costs of long-term care while still leaving a legacy for your loved ones.

By paying a one-time lump sum premium, you immediately establish:

  • A death benefit for your beneficiaries

  • A pool of funds available to cover qualified long-term care expenses

Q: What types of insurance products can be linked?

A: A Linked Benefits product is typically built from a base insurance product, such as:

  • Life insurance, or

  • Annuities

These are enhanced with a long-term care rider, which provides additional LTC benefits. If you need long-term care, the policy can offer income tax-free reimbursements for qualified expenses — all without sacrificing your death benefit entirely.

Q: What does a Linked Benefit provide me?

A: A Linked Benefits policy provides several key advantages:

✅ Guaranteed Death Benefit – Your beneficiaries receive an income tax-free death benefit, even if you partially or never use the LTC benefits.
✅ Value for Money – The combined death and LTC benefits often exceed the initial premium amount.
✅ Flexibility – You get a guaranteed level of benefits, no matter how life unfolds.

Q: Who should consider a Linked Benefit policy?

A: You may want to consider a Linked Benefits plan if:

  • You are between ages 55 and 75

  • You have investable assets (funds not needed for day-to-day retirement living)

  • You want to protect against potential long-term care expenses

  • You’re looking for tax-efficient strategies to preserve your estate and legacy

Still Have Questions?

We’re here to help. Give us a call and let’s talk about whether a Linked Benefits policy makes sense for your financial future.

This Medicare information section is here to educate you about your insurance options and provide you with the resources you need to help you select the right plan for your unique needs.

If there’s anything you need or if you have any questions, please feel free to contact us. We are here to help.

Life insurance