Life & LTC Hybrids

Some companies let you use your life insurance death benefit to pay for specific conditions such as terminal illness or for qualified long-term care expenses such as home health care, assisted living or nursing home care. The life insurance death benefit used while you are alive is known as an accelerated death benefit. A life insurance policy that uses an accelerated death benefit to pay for long-term care expenses may also be known as a life/long-term care Hybrid policy.

It may be an individual or a group life insurance policy. The company pays you the actual charges for care when you receive long-term care services, but no more than a certain percent of the policy’s death benefit per day or per month. Policies may pay part or all of the death benefit for qualified long-term care expenses. Some companies let you buy more long-term care coverage than the amount of your death benefit in the form of a rider.

Some policies may allow you to withdraw the cash value of their policy to pay for specific conditions and expenses. It is important to remember that if you use money from your life insurance policy to pay for long-term care, it will reduce the death benefit your beneficiary will get.

For example, if you buy a policy with a $100,000 death benefit, using $60,000 for long-term care will cut the death benefit of their policy to $40,000. It may also affect the cash value of your policy. If you bought life insurance to meet a specific need after your death, your survivors may not be able to meet that need if you use your policy to pay for long-term care. If you don't use the long-term care benefit, the policy will pay the full death benefit to your beneficiary. See carrier illustration and specimen contract for more information.

We offer a wide variety of LIFE/LTC Hybrids plans.