HYBRID LONG-TERM CARE Insurance

The Ultimate Pre-Planning Tool

Your client’s estate plan isn’t complete until you’ve helped them secure a Hybrid Long-Term Care Insurance policy. This product provides your client complete protection as they prepare for retirement and beyond.

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What is Hybrid LTCI?

Long-Term Care Insurance (LTCI) provides financial coverage in the event of a stay in a nursing home, assisted living facility, or in cases of home health care services. Hybrid LTCI (also known as Asset-Based LTCI) consists of a life insurance or annuity contract with long-term care benefits attached to the policy.  Typically funded with a single premium, this policy’s benefits can be customized to fit the client’s anticipated long-term care needs.

Product Features

A Policy that Offers More than just Long-Term Care Coverage

Jar of Cash

TAX-FREE BENEFITS

This policy goes to work for to you even before a long-term care stay. It contains cash value that continues to grow on a tax-deferred basis. Then, if a long-term care stay becomes necessary, the proceeds can be accessed tax-free. Plus, under the Pension Protection Act, this policy can be funded using an existing deferred annuity.  Any gain recognized on the previous policy can be used tax-free in a long-term care situation. In short, this policy continues to earn money while providing tax breaks at the same time.

Elderly Couple Signing Paperwork

GUARANTEED DEATH BENEFIT

One of the biggest concerns people face when considering LTCI is the “use it or lose it” mentality that came along with old traditional policies.  If the owner never needs long-term care, they will have lost the premium amount they paid to the insurance company. However, with Hybrid LTCI, your clients have a guaranteed death benefit for their loved ones should they not need long-term care. This creates peace of mind not only in the midst of a long-term care stay but also in knowing they aren’t at risk of losing their investment.

Medicaid Qualification Screening

EASIER UNDERWRITING PROCESS

Another major concern of Traditional LTCI policies is the underwriting process. Any number of ailments or health concerns can result in a denial. With Hybrid LTCI, the underwriting process is less burdensome, meaning your client is more likely to receive an approval. Plus, we offer complimentary anonymous pre-screening to help determine whether your client qualifies for a policy before committing to going through the process.

ADDITIONAL PRODUCT BENEFITS

Ability to fund with an IRA.

Joint policies with shared benefit pool available.

Inflation riders available.

WHEN IS HYBRID LTCI APPROPRIATE?

If you have a client in good health looking to solidifying their estate plan, this product is the best choice to protect their financial future. Because Hybrid LTCI typically requires a lump sum premium amount, it may be more appropriate for higher net worth clients that can afford the upfront investment. Additionally, Hybrid LTCI contains cash value, so it should not be used in conjunction with a crisis Medicaid plan.  However, if your client is in the pre-planning stage of long-term care planning, this product offers financial security while providing the opportunity for growth.