When Should You Buy a Life / LTC Hybrid Policy?

by Scott A. Olson, CLTC

Instead of using traditional long-term care insurance policies, a LTC hybrid policy offers more opportunities to those who have a bad health history – as many who do are more likely to be declined. There are other factors too, which we will review in this article. Buying a Life / LTC / Annuity hybrid policy can be beneficial compared to traditional long-term care insurance policies.

LTC Hybrid Policy – Better For You?

For most people, a long-term care partnership policy offers the best value in long-term care insurance. However, there are situations where a Life / LTC / Annuity hybrid can be a better fit. 

For example:

  1. If you are more likely to be declined for a traditional long-term care policy (due to health history) but likely to be approved by the Life/LTC hybrid company.
  2. If you are more likely to be charged a higher premium for a traditional long-term care insurance policy (due to health history) but likely to be approved with a good rate by the Life/LTC hybrid company.
  3. If a limited pay policy is very important to you. An example of a limited-pay policy would be a policy where you pay premiums for only 10 years, and your policy remains in force for as long as you live.
  4. If an unlimited benefit period is very important to you. 
  5. If you plan on moving outside the U.S. or Canada and need a policy that will pay benefits for care anywhere in the world.
  6. If you need to have a "cash indemnity policy.” For example, if you want to be able to pay a friend or family member to provide care a “cash indemnity policy” will do that.
  7. If your retirement income is so high that you would have little to gain from the "asset protection" offered by the long-term care partnership programs. 
LTC Hybrid Policy

Best LTC Hybrid Policy Carriers

If you are going to purchase a LTC hybrid policy, you should buy it from one of these top carriers:

  • OneAmerica
  • Lincoln National
  • Securian
  • Nationwide
  • Brighthouse

There are many “not-so-good” hybrids out there, but the hybrids offered by those five companies are excellent policies.

 

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