Life-Long Term Care: Hybrid Insurance

This type of Life Insurance doubles as Long Term Care coverage.  The most important benefit of this police is that the buyer will get some benefit from premiums even though the insured may never use the Long Term Care benefit.

The insured can use the benefit of this policy to pay a pre-determined Long Term Care benefit, or if never needed the beneficiary of the policy will receive the cash benefit upon death of the insured.

This type of policy requires a one lump-sum single payment.  The key for the individual that is interested in this type of policy is that they need to invest a substantial amount of money $50,000-$100,000.  One needs to consider if they have the available “spare” cash. This money does not pay out any interest; however it can be a win-win situation.

The insured may use the benefit for long term care needs, or the beneficiary will receive the death benefit upon the insured’s death. The last benefit is that the insured may receive their investment back with certain restrictions. This benefit varies with each company that sells this type of insurance.

Underwriting

The underwriting for these policies is simplified. This means that there is less health questions that are asked at the time of application. The application does have to reveal health conditions and medications of the applicant