Hybrid Policies For LTC

An alternative to traditional LTC insurance.

Hybrid or linked benefit products also called "asset-based" mean there is a base product such as universal or whole life insurance or an annuity that provides long term care benefits if needed.

Hybrid policies are regulated by your state's department of insurance. Not all products are available in all states.

Your Health

The healthier you are the more and better choices you have.

If you can pass a health screening then you may be eligible for either a hybrid life insurance with a long term care rider or a hybrid annuity with a long term care rider.

Life/LTC or Annuity/LTC - with underwriting

With underwritten linked-benefit products you will be getting "X" times your initial premium in long term benefits. With the hybrid life policy you also have a death benefit, your heirs will receive any unused death benefit tax free.

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Life Insurance with Long Term Care

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With the life insurance product you can pay every year or month, you can pay for 10 years and then no more, or you can pay one time, a single premium.

You can pay with cash, convert an old life policy cash value, or if over age 59 1/2 you can use qualified money (IRA/401k) to fund the policy.

The amount of LTC benefits you will receive depends on how much your death benefit, your health and your age. The older you are when you start the less you will get in return.

Term commitments, interest, penalties, requirements, and exclusions are specific to each product.

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Annuity with Long Term Care

Annuity LTC

The other option for leveraging your money against the cost of long term care is the annuity with a long term care rider. The rider is underwritten. The best candidate is someone with an existing annuity because they can roll-over the current annuity to an annuity with LTC without paying capital gains.

Pension Protection Act

If you have an existing annuity or a whole/universal life insurance policy then you can exchange for a Life/LTC or Annuity/LTC without tax consequences. More about this in the Pension Protection Act.

 

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