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What is a hybrid long-term care insurance policy?

Hybrid long-term care insurance is actually a life insurance policy with a long-term care rider. But how does it compare to a traditional long-term care insurance policy? And what about rate increases?! Every family has different financial needs and goals. One product definitely does not meets the needs of everyone. Watch the video to learn more, or schedule a webinar time to learn even more.

There are 4 parts of every hybrid long-term care insurance:

  1. The single premium – the most popular hybrid long-term care insurance policies are funded by a single premium payment and how much you pay is totally up to you. The more you cash you put into the policy, the richer the benefits will be. These products can be called “asset-based” long-term care because the funding moves cash from one asset into one of these hybrid long-term care insurance policies.
  2. The cash surrender value – this is how much will you get back if you cancel the hybrid long-term care insurance policy, or how much cash you will receive if you decide you don’t want the policy anymore. The cash surrender value is usually equal to the single premium amount, and it doesn’t matter when you cancel. After 1 year or 10 years, you can get your cash returned to you.
  3. The death benefit – the amount your heirs will receive upon your death is usually a little bit more than the single premium, but not a whole lot. If you don’t need long-term care and you pass away, then your beneficiary will receive the death benefit. If you never need long-term care, at least the policy doesn’t go to waste. But, if you need long-term care, the death benefit is used for the cost of long-term care. About 1/25 of the death benefit is used to pay for long-term care. After 25 months, there is usually little to no death benefit left. Each long-term care hybrid is different, so be sure to check the details. Also, if you’ve used up the death benefit to pay for long-term care, then there is no longer any cash surrender value.
  4. The long-term care rider (also known as the extension of benefits rider or continuation of care benefit) – means that even after your death benefit has been used up paying for your long-term care, you will continue to receive long-term care benefits.

WHICH TYPE OF POLICY IS RIGHT FOR YOU?


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