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Question for the Money Doctors

Question submitted on Oct 24, 2015.


my father had a long term health care policy of which payments were made to him, he recently passed on, what happens to the balance of his long term health care policy.


 The treatment of the balance in your father’s long-term care policy depends on the type of policy he owned.


If your father owned a traditional long-term care policy, then there is no balance to collect.  The coverage was only for his care during his lifetime.


It your father owned a long-term policy that guaranteed a return on premiums, which he could have purchased as a rider on his policy, then the beneficiaries on the policy could receive any balance left after subtracting out any payments (claims) that were paid to him.

An additional type of hybrid policy combines long-term care with life insurance.  Sometimes this is referred to as a linked benefit policy.  If this is the type of policy your father owned, then his long-term care claims (the payments made) would have reduced the death benefit, but whatever remains should go to the beneficiaries.

Contact the insurance carrier to determine the type of policy he had and provide notification of his passing.  They will be able to provide any forms necessary to fill out in the event there is anything owed to the beneficiaries.

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