Hybrid Long Term Care

Hybrid policies are more appealing to customers because they either cover long term care expenses if need be or payout a death benefit.

Hybrid long term care.

Typically most hybrid long term care insurance policies offer a benefit period as high as 7 or 8 years. Whatever you use for long term care is subtracted from the death benefit when you die. A hybrid policy is simply a combination of a traditional permanent life insurance policy with a long term care rider. This overcomes the use it or lose it approach that makes most traditional ltc policies unfavorable.

The long term care benefit is linked to the death benefit. A person can buy a hybrid policy by paying a one time lump sum premium. A long term care policy is a type of health insurance that can be purchased to help you avoid large fees on long term health care. Attempts to combat concerns about traditional long term care insurance have resulted in combination or hybrid products using an asset based approach to fund long term care.

As we get older the chance of requiring long term care increases. Oneamerica s asset care is the only hybrid ltc product that provides a lifetime benefit period resulting in unlimited ltc benefits. A new generation of asset protection alternatives to traditional long term care insurance are becoming increasingly popular for wealth transfer and long term care planning. In the hybrid scenario a policyholder would withdraw funds from the policy when they are needed for long term care and the insurance company pays for care when those funds run out.

What are the benefits of hybrid long term care insurance. Hybrid long term care insurance is life insurance that has long term care benefits. Unlike traditional long term care insurance premiums are guaranteed they can never be increased. There are also annuity based policies where an existing insurance policy from a different carrier can be linked to a long term care rider.

With hybrids you re paying extra just for the guarantee of getting money back. Simply put a hybrid long term care policy combines the benefits of life insurance or annuity with long term care benefits. Hybrid long term care insurance is usually purchased through an insurance agent or broker. Hybrid combined or linked long term care policies typically feature a life insurance component with a long term care rider.