When Hybrid LTC Makes SenseWho should buy or at least consider "hybrid" LTC insurance? |
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- CASH BENEFITS: If you need/want the ultimate flexibility and simplicity of "cash benefit" LTC insurance claim payments.
- (Only available on select Hybrid LTC plans.)
- INSURABILITY ISSUES: If you have complicated medical/health conditions or history, especially if you have been told you would not qualify for "traditional" LTC insurance.
- "PAID-UP" COVERAGE: To create a "one-and-done", "pay-it-and-forget-it", single-premium funding strategy. There are also options from 5-pay to 15-pay periods depending on age of purchase.
- (Note that there is a Traditional LTC insurance plan available with a guaranteed single-premium, and two T-LTCI options with premiums guaranteed to be paid-up after 10 years.)
- GUARANTEED PREMIUMS: This could be with a single-premium, 10-pay, or life-pay premiums.
- (Significantly higher premiums than equal-benefit "Traditional" LTCI.)
- CASH VALUE TO EXCHANGE: If you have cash value in older life insurance policies to re-position - with a "tax-free exchange" - into a new life plus LTC insurance hybrid plan.
- ANNUITY RE-PURPOSE: Cash value in older annuities to re-position - with a "tax-free exchange" - into a new LTC annuity hybrid that can pay out all of the annuity proceeds - including any interest/investment "gain" - tax-free when used for qualified long-term care expenses.
- PARTIALLY SELF-INSURE: When a longer self-insured "waiting period" (e.g., 3-years) and an unlimited/lifetime benefit as a financial "stop-loss" is desired.
- (Note that there IS an unlimited/lifetime benefit period available on a Traditional LTCI plan too.)
If you think hybrid LTC insurance may be right for you, or you want to discuss all your options with a truly independent LTC specialist we're here ready to help you plan!
Bonus Article:
Updated 6/9/2020
