For clients nearing retirement, long term care insurance is a very important piece of the financial plan. However, many clients shy away from LTCI as there is no guarantee they’ll use it and they don’t want to pay premiums they might not get back. There are a few ways to address this, but for clients with non-qualified or cash assets, there are a variety of options for a LTC hybrid policy.
A LTC hybrid is a blend of LTC with either life insurance or an annuity. For clients with assets, these hybrids can be funded with a lump sum of money. Once funded, the client has a paid-up policy with LTC coverage similar to a traditional LTCI policy. The hybrid policy also offers a death benefit, so the client will be able to pass money to a beneficiary should they never need the LTC. Many of these policies also have a surrender value or cash value of some kind, giving the client the flexibility to cash out the policy if they choose.
Giving clients flexibility, guarantees, and LTC coverage blended with a death benefit is a great way to plan for a solid retirement. There are many options in the hybrid LTC space, so give us a call and let us help find the best fit for you and your clients.