Asset-Based Long-Term Care Policy

An asset-based long-term care policy, often called a hybrid policy, is a financial product that combines life insurance (or annuities) with Long-Term Care Insurance. 

This policy provides both long-term care coverage and a death benefit (or annuity pay-outs). Often, individuals buy these policies in one lump sum. 

Here's how it works. You'll receive your death or annuity benefits as any normal policy would. But, if you need long-term care, you'll gain early access to a portion of your death or annuity benefits to use for long-term care. 

If you never end up needing long-term care, your policy will provide death or annuity benefits as normal. These combination policies offer protection either way. 

For more information on how combination policies are different from traditional policies, you can read our article that explains the different types of Long-Term Care Insurance.