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Hybrid LTC and Life Insurance Plans

We’re finding some people prefer some of the advantages of going the “hybrid” route for their long-term care coverage. I work with highly experienced professionals who understand the “Hybrid” market inside and out. They are appointed with OneAmerica State Life, Lincoln Financial Money Guard, Genworth and John Hancock and Mutual of Omaha, etc.

Our hybrid clients typically:

  • Want a guarantee there will be NO rate increases to their premium, ever.
  • Are very comfortable financially and are tempted to even just self-insure the risk, but realize having insurance in place may be prudent.
  • Are people who have $100-150K in an easy-access fund like money market, CD, etc. – as “rainy day” money.
  • Like to know they are going to use this insurance. With Hybrid, there’s a death benefit (life insurance) or the option to use the death benefit for long-term care costs instead. Hybrids work very similarly to “stand-alone” LTC products at claim time.
  • May have income tax sensitivity. Benefits are income tax free.
  • May have more serious health issues preventing the stand-alone companies from issuing them a policy. (We can often find a hybrid company may accept some health histories that are not acceptable by stand-alone companies.)

Other advantages of some Hybrid LTC products:

  • One of our carriers still offers UNLIMITED lifetime coverage for LTC
  • Though monies are re-allocated, it remains YOUR money under your control. So the money will be used either for long-term care costs, or for a death benefit (life insurance) or you can pull out your money later.

If you’re interested in learning more about the HYBRID LTC concept, be sure to ask me about it.