'Hybrid' Insurance Policies Offer a Way to Cover Long Term Care

There is more than one way to plan for the financial costs and burdens of aging. Traditional Long-Term Care Insurance is generally the most affordable way; however, asset-based hybrid plans that combine life insurance or annuities with Long-Term Care Insurance are becoming a popular option for some people.

Combining these two products gives you an option of a single premium or annualized premiums that can never increase with death benefit all in one policy. If you should be lucky enough never to need care, you will get your money in the form of a death benefit.

The risk of needing help with activities of daily living or supervision due to dementia increases as we get older. Many experts suggest planning for long-term health care; otherwise, you could lose a substantial amount of your savings, even all of your assets, as you place a burden on your family. Without an advance plan, your family would be responsible for either providing care or managing your paid care services.

The consequences of long-term care affect both your family and your finances. Ignoring the problem will be costly and create stress and anxiety on your family, who will be responsible for dealing with the situation.

Traditional Plans Affordable But Hybrid Plans Offer Death Benefit

Traditional Long-Term Care Insurance policies are very affordable for most people, especially if you purchase a plan in your 40s or 50s when you still enjoy better health. Generally, there is no death benefit with those traditional policies, although some offer a return of premium rider at additional cost. Some people want to get money back - one way or the other - this is where a hybrid policy could play a role for some American families. 

Read more about hybrid Long-Term Care Insurance.

The bottom line is pretty simple. Having some plan for long-term health care costs is much better than having no plan at all. 

There are many options when it comes to Long-Term Care Insurance.

They include:

• Traditional Long-Term Care Insurance
• Partnership Certified Long-Term Care Insurance
• Hybrid/Asset-Based Long-Term Care Insurance
• Short-Duration/Short-Term Care Insurance

Regulation

Not every life insurance policy or annuity that says they cover long-term care is really a long-term care plan. Long-Term Care Insurance, including true 'hybrid' policies, meets federal guidelines under Section 7702(b) of the federal code. 

Policies that meet these guidelines have consumer protections, standardized benefit triggers, and tax advantages. Several top insurance companies offer hybrid policies - Top Insurers for Long-Term Care Insurance | LTC News.

The question is which type of plan best fits your needs and budget. However, your health and family history should also be considered. Some hybrid plans have more relaxed underwriting standards; others are very conservative. One hybrid has unlimited long-term care benefits, which can be very useful if you have a strong family history or millions in assets to protect - especially if some of those assets are tied up in property or businesses. 

Get Professional Help

Typically, long-term care planning is not a job for a general insurance agent or financial advisor. These professionals usually lack extensive experience and usually only work with one or two insurance companies.

An experienced Long-Term Care Insurance specialist is best suited to help you plan for the costs and burdens of aging. A specialist will help you 

determine if you need coverage in the first place. If so, they will help you decide which type of plan is best based on your age, health, family history, and the amount of assets you are attempting to protect. 

Other considerations include your marital/partnership status and if you have children. Your adult children generally will not be able to provide care, but the right plan will assist them by giving them the time to be family reducing the tremendous stress otherwise placed on them and their families. 

If you have no children, you might be more concerned with the quality of future care, independence, and control over your choices of type of care to be delivered to you when you need extended care. 

Case Management Key Benefit

Some Long-Term Care Insurance policies, including hybrids, offer case management to help develop a plan of care, find caregivers and monitor your situation over time. Often, the case manager becomes your advocate.

Don't make the mistake of speaking with the wrong person about long-term care planning. A qualified specialist will find you the best coverage at the best value.

Long-Term Care Insurance Premiums Vary Widely 

Premiums for these products vary dramatically. The underwriting guidelines are also different with each insurance company. An experienced, qualified Long-Term Care Insurance specialist, who represents the major companies, can give you accurate quotes and professional recommendations based on your situation. 

Start your research by using the tools available on LTC NEWS. A list of frequently asked questions is an excellent place to start.

You can discover both the current and future costs of long-term care services in your state. This way, you will be able to determine the amount of coverage you may need.

Then find a trusted Long-Term Care Insurance specialist. They will help shop for the best coverage at the best value, which matches your age, health, and goals.

It is best to plan before your retirement. Give your family the gift of time and peace of mind. You own a solution when you own any type of Long-Term Care Insurance policy. You will be able to preserve your savings and legacy and give your loved ones the time to be family instead of caregivers.

Everyone will enjoy the peace of mind knowing a plan is in place to protect savings and income in addition to reducing the burdens otherwise placed on those you love.