Long-Term Care Insurance

Education

Hybrid LTCi Products

Along with traditional LTCi we sell products that link LTCi to life insurance (referred to as hybrid policies). Below are the primary pros and cons of hybrid contracts:

Pros:

  • If the policyholder doesn’t need LTC their heirs receive a death benefit usually equal to what was paid in premiums
  • Premiums are guaranteed not to increase
  • 1035 exchange options are available
  • Underwriting is sometimes easier

Cons:

  • Hybrids cost 60%-80% more than traditional LTCi policies if LTCi benefits are equal (see analysis below)
  • Hybrids do not qualify for Partnership
  • Hybrids do not qualify for certain tax deductions
  • Hybrids from top carriers are expensive

Below we compare a hybrid product (LTCi + life insurance) to traditional LTCi (each with the same LTCi coverage) for a couple, both age 55. We did not include inflation protection because most hybrid policies are sold without it.

 Hybrid LTCi/LifeTraditional LTCi
TypeOne Life/LTCi joint contractIndividual LTCi with shared benefits
LTCi benefit$10,000/month each$10,000/month each
Inflation protectionNoneNone
Elimination period60 days60 days
LTCi benefit period4 years total4 years total
Premium guaranteePremium is guaranteed not to go upNo premium guarantee
Death benefit$200K second-to-die death benefit less LTCi claimsNo death benefit
Total annual premium$7185$3653

We begin phone consultations by learning about your situation. Then we discuss details of traditional LTCi and hybrid options with a focus on which type of contract is the best match for your specific situation.

Here are the subjects we cover:

  • Compare pricing between traditional LTCi and hybrid LTCi
  • How hybrid death benefits work
  • Partnership
  • Inflation protection
  • Premium stability
  • 1035 exchange options
  • Tax deductibility
  • Quality of carrier

Because hybrid products combine multiple coverages in a single policy, these products are more difficult to compare than traditional LTCi policies. For these reasons we are unable to show sample pricing on this website.

For specific pricing and additional information on hybrid products, please contact an advisor to schedule a phone consultation.