The Blending of Life Insurance with Long Term Care - The New Hybrid

Life Insurance

Life insurance and long term care are starting to blend together. There are new hybrid life insurance products that are available where you can have a death benefit if you pass away and never need a day of long term care, or if the situation arises, you can access the death benefit for a long term care situation. These new hybrid products also give you multiple payment options. There are times when you may inherit money, and want to get all of your insurances needs taken care of at one time. A hybrid life insurance product can do this because it allows you to do a single premium or lump sum amount.

Also, these products are now flexible in offering multi-year pay options, up to 10 years. Some people like the idea of putting in a smaller amount of premium over a longer period of time. They’re also a great vehicle if you have an older permanent policy that has cash value. You may want to solve for the long term care need, so the cash value gives you the ability to fund a new policy that will offer an LTC rider. In retirement, you may no longer have a need for the permanent life insurance products you bought years ago, so being able to redirect that internal cash value helps you maintain the death benefit you once had, but also gives you the new long term care benefit all within one policy.

The best part of the new hybrid insurance product is, most clients are starting to think about reviewing these policies in their mid 50’s, as they can see their retirement is right around the corner. At this age, most want to make sure that they have everything secure with their insurance coverage. This is the perfect age bracket to be looking at life insurance with long term care because it’s much easier to get insured, instead of waiting until later when it might not be as feasible.

About the author: Mark Yurkovic has been in the life insurance business for over 12 years, and holds CLTC, LUTCF, and CES designations. He enjoys building remote control boats, and playing instruments including the piano, guitar, banjo, and mandolin. Mark would love to discuss life insurance options and work towards finding the best policy fit for your family. You can contact Mark at 1-800-651-1953 or MYurkovic@Pivot.com.