Long term care insurance has never been very popular. It’s often expensive and many companies have increased their premiums significantly while others have stopped offering long term care coverage. Also, like auto or home insurance, if you never need the insurance, you don’t get your premiums back (i.e. “use it or lose it”). Recently however, hybrid policies have gained popularity. These policies combine life insurance or an annuity with long term care coverage. If long term care is needed, the hybrid life insurance policy allows access to the death benefit to pay for long term care. For the hybrid annuity policy, the cash value can be used to pay for long term care. Both policies typically offer the option of extending long term care coverage beyond the value of the long term care insurance.
One of the main benefits of hybrid policies is that their named beneficiaries will receive the unused balance of the death benefit or annuity value. These policies can be a valuable tool in protecting an estate from being wiped out by long term care expenses. Contact an experienced elder law attorney today to see if a hybrid policy is right for you.