Hybrid Long-Term Care Policies Provide Cash and Leave Some Behind

A relatively new option for those who wish to buy long term care insurance is a hybrid policy that packages coverage for long-term care with a universal life insurance policy or a fixed annuity. Such products can be tapped for reasons other than long-term care and even passed on to heirs, although the amount available for other uses is reduced if you use the hybrid to pay for long-term care. Sales of such hybrid or combination products have more than doubled since 2008 to more than $2.4 billion last year, according to Limra, an insurance industry research group. In comparison, $300 million in stand-alone policies for long-term care are sold annually, which are now actively sold by only 16 insurers, compared with nearly 100 a decade ago, as companies face higher costs and drop out of the market. A hybrid policy for long-term care works by keeping a certain amount of cash within the policy.

Source/more: New York Times

David Wingate is an elder law attorney at the Elder Law Office of David Wingate, LLC. The elder law office services clients with powers of attorneys, living wills, Wills, Trusts, Medicaid and asset protection. The Elder Law office has locations in Frederick and Montgomery Counties, Maryland.