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
How to Get Started with LTC Hybrid Products
If you decide to offer LTC Hybrid Products, we recommend talking to someone from the Medicare Advisors team of experts. They’ll provide answers to your questions and have tools available to support your new product offering.
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