Everything you need to know about Hybrid Life Insurance that comes with Long Term Care

Hybrid cars – You are probably aware of this term. But what about hybrid life insurance? Have you ever heard of that?

Hybrid life insurance combines long term care and life insurance in a single policy. Just like hybrid cars, these policies are becoming increasingly popular becomes of some of their unique benefits.

How hybrid life insurance works

Most people used to purchase Long Term Care (LTC) insurance as a standalone policy in the past. Today it is becoming more common to buy LTC coverage that also includes life insurance.

LTC portion of the policy pays for care in case the individual develops a health condition and is in need of care. The life insurance part, on the other hand, gives near and dear ones financial support in case the individual passes away.

So, you see you receive long term care benefits in case you develop a health condition. And your loves ones receive full death benefits if you never use the LTC benefits. It is a win-win situation in terms of coverage benefits.

Advantages of Hybrid Life Insurance

  1. A complete coverage

Hybrid life insurance that comes with a LTC coverage lets you and your loved ones benefit from both the plans. It’s one of the most complete coverages you can get.

  1. It is not too difficult to get

Getting coverage for standalone LTC plans can be difficult. For hybrid life insurance, fortunately, the medical underwriting is far more relaxed. In fact, some of the plans will only require you to answer a few health questions – that’s it!

  1. Payment flexibility

There are two ways you can pay for hybrid insurance – a lump sum amount or with annual payments.

  1. Can help you save taxes

Life insurance pay-outs aren’t taxed. Premiums paid for LTC insurance can also be sometimes deducted from your federal and state taxes.

  1. Less effort and time

Hybrid life insurance is much easier to manage than two separate stand-alone policies of LTC and life insurance policy.

  1. Negligible premium hikes

Most people are worried about the cost of LTC insurance. That is because the premiums of a standalone LTC insurance can increase dramatically. Hybrid life insurance policies, on the other hand, offer more stability in terms of pricing.

  1. Better return on your investment

For a traditional LTC policy, you forfeit all your premium money if you never required long term care. With hybrid life insurance, it is not a problem. Your loved ones get the full death benefits in case you never required long term care. Some policies can even provide you with a small death benefit amount no matter what.

  1. The option of getting your money back

Some policies come with a money-back guarantee (return the premium you have paid) in case you have decided that you do not need the policy after a set amount of time.

  1. The option to lock in your premium amount

Some hybrid life insurance plans allow you to lock in your premium payments.

  1. The ultimate peace of mind

Hybrid life insurance plans erase all worries about the costs involved in potential long term care and also helps to secure your family’s financial future. Nothing can be better than that.

Talk to our experienced advisors to know more about life insurance plans in Brampton, Toronto, Mississauga and Hamilton

An experienced advisor can find out the best hybrid life insurance plan for you based on your goals, current financial situation and health conditions at no additional cost. Talk to our advisors today!