American Association for Long-Term Care Insurance

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Best Hybrid Long-Term Care Insurance

Hybrid long-term care policies are increasingly popular. They are also referred to as linked-benefit or asset-based long-term care. These policies provide money for qualifying long-term care if you need it. If you don't need long-term care, they pay a death benefit to a designated beneficary. There are many insurers who now market these policies. Here are 10 reasons to compare hybrid long-term care plans before you apply.

  • Your cost can vary for basically equal coverage.
  • The maximum long-term care benefit amounts can vary.
  • Death benefits from the life insurance can be significantly different.
  • Some insurers offer discounts for couples.
  • A 'cash' benefit can be much simpler than submitting receipts for reimbursement.
  • You might like a policy that is ‘paid-up at age 65’?
  • Policy deductibles range from 0-day to 90-days.
  • There can be some tax deductible benefits (again they vary).
  • Refund (Return of Premium) contractual limits are not equal.
  • Inflation growth options can be 0%, 3%, 5%, etc.

Compare Hybrid Long-Term Care Before You Buy

You only buy hybrid LTC once. It almost never pays to switch coverage. The diffrerences outlined above are a few reasons to compare before signing on the dotted line.

Cost is definitely one reason. Benefits (when you ultimately need care) are much more important. And, we provide 4 real examples below. They are hybrid policies offered by the 4 leading insurance companies.

If you are interested in comparing, the Association strongly recommends speaking to a hybrid long-term care specialist.

Connect with top national hybrid long-term care agents now. Complete the Compare Benefits form and submit.

Watch This 6-Minute Video Before You Buy!

Four Real Examples Comparing Policy Coverage And Costs

The following examples are for a 55-year-old male. Initial long-term care benefits are $4,000-per month growing at 3% yearly. At age 85, benefits will equal about $9,700-per-month. At age 90, benefits will equal about $11,250-per-month.

Company A B C D
Yearly Cost $6,100
(pay to age 100)
Not available.
10-pay only
(pay to age 100)
(pay to age 95)
Maximum LTC Benefit $753,627
(at age 85)
Tax Free
(at age 85)
Tax Free
(at age 85)
Tax Free
(at age 85)
Tax Free
Cash Surrender Value $43,682
(after 20 years)
(after 20 years)
(after 20 years)
(after 20 years)
Death Benefit $274,405
(at age 100)
(at age 100)
(at age 100)
(at age 100)

Premiums as of March 2022 and subject to change. State of Maryland. Policy features, options and premiums can vary. Read your policy contract carefully.

Why One Hybrid Long-Term Care Policy May Be Better For You

This is where the expertise of a specialist really benefits you. We have included a few reasons “why” various policies have features and options that may be of significantly greater value to you. It takes a real professional to understand and explain these differences.

Reasons Agents Like Company A

Benefits are paid monthly (‘indemnity’) without the need for you to collect and submit receipts for payment (‘reimbursement’). A special provision provides retroactive benefits back to Day 1 after you pass Day 90 of claim. Policy offers a larger ‘residual death benefit’ (remaining benefit after LTC claims have exhausted policy).

Why Agents Favor Company B

While annual payments are not available, their 10-pay option is slightly less expensive than others. Policy offers a 0-Day Elimination Period option for home care and facility care.

Or, Why Agents Would Favor Company C?

Has a higher Cash Surrender Value for those who think they may want that. Has fewer options for inflation growth of benefits, thus a lower potential maximum LTC benefit shown above. Company offers a choice of ‘reimbursement’ or ‘indemnity/cash’ benefit payout that can be selected at time of claim inception.

Why Company D?

Can use retirement (IRA) money with this company. Only insurer offering an ‘unlimited duration’ policy option where maximized coverage is desired.

Questions To Ask Before Buying

Which Internal Revenue Code Applies To The Policy You Are Recommending? Is it 7702B or 101(g). And, IF you are not certain why this matters, take 6 minutes to watch the Youtube video. Click the link above.

How Many Hybrid Long-Term Care Insurance Companies Are You 'Appointed' With? Appointed means the agent or financial advisor can earn a commission by selling you the particular plan. Chances are they will NOT compare plans they can NOT earn a commission selling.

Will You Compare A Hybrid LTC Plan With A Traditional LTC Policy? Hybrid policies cost 2-to-4 times more than a traditional long-term care insurance policy. That's because they offer dual benefits (long-term care AND a life insuramnce death benefit). Comparing at least allows YOU to make the decision of whgat's best for you.

More Hybrid LTC Resources

Speak with a hybrid long-term care agent who specializes in long-term care insurance.

See the latest long-term care insurance statistics including price comparisons for traditional and hybrid LTC.

Best Linked-Benefit Costs Click Here For Details