Hybrid Long Term Care Insurance
Hybrid Long Term Care Insurance is a combination of Life Insurance and Long-Term Care Insurance. This type of policy covers the same costs associated with a Traditional LTC plan; except they also have a built-in life insurance benefit. These policies are also comprehensive, providing benefits for Home Care, Assisted Living, and Nursing Homes.
These plan design that provide a death benefit can also be used for long term care needs. If an insured were to need care, they would first collect benefits from the death benefit. Should the death benefit become completely exhausted for care, there is a long-term care rider which includes additional benefits for LTC needs. If the death benefit is never used or has funds remaining in the policy after the insured has passed away, the beneficiary will inherit the remaining face amount.
These policies provide guaranteed premiums. Premiums can be in a lump sum or for lifetime. They can have some form of Return of Premium or Surrender Value, which creates flexibility. If the insured’s lifestyle changed or they no longer needed the policy, the insured may surrender the policy and collect their premiums.
Most Hybrid LTC policies today are Cash Indemnity policies, meaning LTC benefits are paid out in cash. Having a cash indemnity policy provides lots of flexibility for the insured. Rather than submitting receipts to show proof of care to be reimbursed, the insured will receive a check for the monthly amount and can use that cash for care however they like. The insured can also pay whomever they choose to provide the care.
Why Hybrid LTCi