10 Advantages of Hybrid Life Insurance with Long-Term Care

by Amanda Austin | November 17, 2020 

You probably know about hybrid cars. But do you know about about hybrid life insurance? 

This coverage combines long-term care and life insurance into one policy. Like hybrid cars, these hybrid policies are increasingly popular. That’s because they have some unique benefits. 

How It Works

Most people bought long-term care insurance as a standalone policy in years past. Today, it’s becoming more common to buy the coverage as a policy that also includes life insurance. 

The long-term care portion of the policy pays for care if you develop a health condition and need care. Meanwhile, the life insurance portion gives your loved ones financial support if you were to pass away.

You receive the long-term care benefit if you develop a health condition. And your loved ones get the full death benefit if you never use the long-term care benefit. As a result, it’s a win-win in terms of coverage benefits.

10 Advantages of a Hybrid Life Insurance Policy

1.      More complete coverage. A hybrid life insurance with long-term care policy lets you—and your loved ones—benefit from two very important coverages.

2.      Easier to get.  Getting coverage for standalone long-term care policies can be difficult. Fortunately, the medical underwriting for hybrid life insurance policy is often more relaxed. In fact, some policies only have you answer a few health questions.

3.      Flexible payment options. There are two ways to pay for a hybrid life insurance: with a lump sum or with annual payments.

4.      Tax savings. Life insurance payouts to your loved ones aren’t taxed. And premiums paid for long-term term care insurance can sometimes be deducted from your state and federal taxes.

5.      Less time and effort. It’s much easier to research, buy, and manage one policy than two separate policies.

6.      Fewer premium hikes. Many people worry about the cost of long-term care insurance. That’s because standalone long-term care policy premiums could increase dramatically. Fortunately, hybrid policies typically offer more pricing stability.

7.      Better return on your premium dollars. You forfeit all premium dollars paid for a traditional policy if you never needed long-term care. Fortunately, there’s no “use it or lose it” with a hybrid policy. That’s because your loved ones benefit from the full death benefit if you never need long-term care. Some policies even guarantee a small death benefit no matter what.

8.      Option to lock in your premium. Some hybrid life insurance policies let you lock in your premium payments.

9.      Option of a money-back guarantee. Some hybrid policies return the premium paid if you decide you don’t want the policy after a set time.

10.   Ultimate peace of mind. Hybrid life insurance coverage erases worries about potential long-term care costs and helps ensure your family’s financial future. Who doesn’t need that?

Getting Coverage

A licensed insurance agent can help you find a policy that works with your life and budget⁠. Get started today by learning about the three main ways to get long-term care insurance. Also check out our answers to commonly asked questions about long-term care insurance. 

Amanda Austin is a freelance writer who has worked in the insurance industry. She lives in Erie, Penn., and holds the CPCU, AINS, and AIS designations.

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