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New Hybrid Life Insurance Long Term Care Policies

Monday, October 28, 2013 - 1:20 PM
Has anyone purchased or heard of these so-called New Hybrid Life Insurance Long Term Care Policies?

I was listening to this regular financial advice program on Mondays and the man who advises was speaking about Long Term Care Policies.  He said most people shy away from them because they cost so much and if they die before using, no one gets the money back.  However, he said there is a new Hybrid Life Insurance Long Term Care Policy which will pay so much for your long term care and if one dies before using it, they return the sum you paid (ex: $100,000.00) plus a bit of interest to your beneficiary.  It is also tax-free.  There must be things to this type of policy that he did not have time to relate on the program and I wondered if any of our posters ever heard of this policy or even purchased it.  In regular LT policies if you don't use it, you "lose" it and this one returns the money to you if you change your mine and want to cancel it or if you die.  He did mention premiums are different according to what age you purchase it etc.

Any info you can share will be appreciated.  Thanks.
6
paoli2paoli21,146 posts since
Aug 10, 2011
Rep Points: 5,113
1. Monday, October 28, 2013 - 2:02 PM
"While a two-for-one product may seem attractive, these products are not for everyone. For one thing, you may have less flexibility with a combined product than you would with a stand-alone product. Hybrid products may not cover home care or include inflation protection, for example. In addition, hybrid products may not offer enough long-term care coverage for what you need. A hybrid product is likely less expensive than purchasing two separate products, but it is often more expensive than purchasing a stand-alone long-term care insurance policy."

Long-Term Care Hybrid Products Give Buyers More Options | ElderLawAnswers
7
ShorebreakShorebreak2,378 posts since
Apr 6, 2010
Rep Points: 12,696
2. Monday, October 28, 2013 - 3:02 PM
Thanks Shorebreak.  Now do you understand why I read your posts?  I know you or others on DA will give me the added "info" that the advisor left out.  I felt it sounded too good to be true the way he explained it so I came on DA to get the real gist about it.  He quickly mentioned something about your cost may be about $8,000.00 month but the policy might only cover about $4,000.00.  That made me think there was more to it than what he was giving.  Too bad, but I guess when it sounds too good to be true, it usually is.

Much appreciation for the link and additional info.
4
paoli2paoli21,146 posts since
Aug 10, 2011
Rep Points: 5,113
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