Jack Nachtrab Life Insurance Consultant

For clients nearing retirement, long term care insurance is a very important piece of the financial plan. However, many clients shy away from traditional LTCI policies since there’s no guarantee they’ll use it, and they don’t want to pay premiums into something they might not use. There are a few ways to address this concern, the most common of which is using LTC hybrid policies. These policies leverage the client’s premium deposit and transfer the majority of future LTC expenses to an insurance company, making these hybrid products a great option for clients who could self-insure, but want to maximize and leverage their assets in a tax-friendly way.

LTC hybrids are a blend of LTC with either life insurance or an annuity. These hybrids can be funded with a lump sum of money or various ongoing premium options. These policies also offer a death benefit, so the client will be able to pass money to a beneficiary should they not need the LTC benefit, thus overcoming the common objection to traditional “use it or lose it” LTC products. Many of these policies also have a surrender value or cash value of some kind, giving the client the flexibility to cash the policy out if they so choose.

Giving clients flexibility, guarantees, and LTC coverage blended with a death benefit is a great way to set up protection of the clients’ assets clients. There are many options in the hybrid LTC space, so give the experts at Wholehan Marketing a call and let us help find the best fit for you and your clients.