Excerpt from Scott’s newest book: “The Simple LTC Solution: How to Protect Your Life’s Savings with a Long-Term Care Partnership Program”

Long-term care benefits that are GREATER than the death benefit.

If you buy a hybrid the long-term care benefits should be at least twice as much as the death benefit. The best hybrid policies have unlimited long-term care benefits.

If you buy a hybrid policy that has long-term care benefits that equal the death benefit, you are not getting any leverage. You are overpaying.

Get a long-term care rider, NOT a chronic illness rider

Hybrid policies are life insurance policies combined with some type of a rider that allows the death benefit to be used to be paid to you before you die. There are two main types of riders:

Chronic illness riders and long-term care riders

Chronic illness riders do not meet the federal guidelines for long-term care insurance. Chronic illness riders, in some cases, may not pay benefits for care that would qualify for benefits under a “long-term care rider”. If you buy a hybrid policy you’re better off buying a hybrid with a long-term care rider, rather than a hybrid with a “chronic illness” rider.

Additionally, in order to sell a hybrid policy with a long-term care rider, insurance agents must take special training and renew that training every two years. Chronic illness riders do not require any special training.

Tax-deductibility of some of the premiums

If you can qualify for it, buy a hybrid that allows for the long-term care rider premiums to be tax-deductible. Most hybrid policies do NOT have any type of tax deductions.