Hybrid Long Term Care Policies

As long term care insurance premiums rise and fewer companies offer policies alternatives to traditional long term care insurance policies are springing up.

Hybrid long term care policies. Some of the coverage with hybrid policies is limited warns leonard wright a san diego cpa. A hybrid long term care policy may be a fit for people who want to make sure they ll get something in exchange for their premium dollars and don t like the use it or lose it aspect of. Because of their unique characteristics and the financial planning. Second some hybrid life insurance long term care policies have an elimination period during which you ll be making payments on the premium but won t be eligible to receive benefits.

Hybrid long term care insurance policies. Even better hybrid policies have fixed premiums that are guaranteed and cannot be increased in the future. Another increasingly popular hybrid product combines life insurance with long term care coverage and offers buyers solutions to a number of problems that. Attempts to combat concerns about traditional long term care insurance have resulted in combination or hybrid products using an asset based approach to fund long term care.

This strategy may be done with a single upfront premium a set of premiums for a fixed term or ongoing premiums. Standalone long term care policies are generally much more expensive but they also tend to be more flexible and have more options to choose from than a hybrid policy kerins explains. The most popular hybrid long term care policies pay cash for home care. With hybrids you re paying extra just for the guarantee of getting money back.

Hybrid long term care policies have opened up new ways of thinking about the role of long term care insurance in financial plans. The primary appeal of this approach is that it eliminates the use it or lose it approach typical in traditional long term care products. In the hybrid scenario a policyholder would withdraw funds from the policy when they are needed for long term care and the insurance company pays for care when those funds run out. For instance one asset based strategy involves the purchase of a long term care insurance policy bundled with a whole life insurance policy.