In an effort to provide more long-term care options for clients, there are now “hybrid” products that link long-term care benefits to additional insurance benefits — such as a life insurance policy or an annuity. These types of policies are unique because:

• Benefits are available whether the client lives, quits the policy (asks for their premium to be refunded), or dies.
• The estate can receive a tax-free death benefit
• The long term care benefits are received tax free
• Flexible financing: The client can “roll” money from cash value in a life insurance policy or another annuity
• Some contracts offer a 100% money-back guarantee if a client changes their mind

Many times, the Life/LTCi hybrids are funded with a one-time, upfront premium payment. However, there are policies that offer lifetime premium payments, or policies that can be “paid up” in a certain amount of years.  These policies have become popular because many clients like the idea that someone will receive a benefit from the policy whether it’s in the form of LTC benefits or a death benefit, or both.  Also, with hybrids, the premiums are guaranteed never to change.

There are many compelling reasons to offer LTC Hybrid Products, such as:
• You can help them leverage some of their “lazy money”
• You can provide your clients with peace of mind
• You’ll be serving the needs of your clients and community
• You can offer a profitable product that will help your bottom line