Preparing for life's possibilities
Long-term care insurance provides you with a monthly benefit to help offset the cost of long-term care as you age. There are several different types of long-term care insurance – in this case, we’re talking about hybrid life/long-term care insurance policies (which are also sometimes referred to as linked-benefit policies). A hybrid life/long-term care policy is a life insurance policy with built-in long-term care benefits.
Hybrid life/long-term care insurance benefits
- If you become chronically ill1, your policy would provide a guaranteed benefit to help cover your care expenses2
- Your premiums and benefits are guaranteed – your policy’s premiums will never increase and your benefit amounts will never decrease
- If you die before needing care, your family will receive a guaranteed death benefit3
- If you decide to cancel your policy, you can receive a return of premium
Hybrid life/long-term care insurance considerations
- You will need to be able to medically qualify for the policy so you must be in reasonably good health
- Because these policies offer guaranteed premium and benefit amounts, they typically have smaller long-term care benefits than a traditional long-term care policy
- The features of these policies can be complex – be sure to discuss the different options with your financial professional
Alternative options
Hybrid life/long-term care policies are a good option if your primary concern is being protected from the potential impact of an extended care event. However, if your primary concern is ensuring you have death benefit protection and your long-term care protection needs are secondary, you may want to consider a life insurance policy with an accelerated death benefit or chronic illness rider.
A life insurance policy with an accelerated death benefit or chronic illness rider allows you to access your death benefit if you become chronically ill, helping to shield your assets and loved ones from the financial impact of a chronic illness.