Hybrid Insurance
Hybrid Long-Term Care Insurance Policies have become a popular form of insuring long-term care expenses. One reason is that Hybrid Long-Term Care insurance policies, are not “use it or lose it;” there will always be a Death Benefit unless long-term care benefits equal to the Death Benefit have been paid out. Another attractive feature of a hybrid policies is that premiums are often guaranteed to never increase, though the Death Benefit may be reduced after a certain age.
Hybrid policies are often referred to as Asset-Based long-term care insurance. There is a life insurance policy behind the Long-Term Care insurance. Hybrid LTC policies are linked benefit insurance policies. The way this works is that you have a life insurance benefit for when you pass, but if you have long-term care expenses, you can accelerate your life insurance benefit to pay for long-term care needs.
Two Types of Hybrid Long-Term Care Insurance Policies
1: The first type of Hybrid Long-Term Care Insurance policy operates like a traditional long-term care insurance policy. You qualify for benefits if you need assistance with two activities of daily living: bathing, dressing, eating, maintaining continence, toileting and transferring. You can also qualify for benefits if you have a cognitive impairment like Alzheimer’s or Dementia.
2: The second type of Hybrid Long-Term Care Insurance policy is more flexible. To qualify for LTC benefits, all you need is for a doctor to confirm that you need assistance and have a chronic condition.