Hybrid or Asset based long-term care insurance (“LTC”) aims to help cover the cost of treatment for chronic illnesses, disabilities or other conditions that need assistance over an extended period of time. This insurance would help provide skilled care from nurses, therapists, or other professionals for daily living activities such as bathing, dressing, and eating.
Asset-based LTC policies are commonly referred to as Hybrid, Universal Life Insurance with LTC benefits. These policies provide a flexible LTC benefit while still providing a death benefit, return of premium features, and access to cash value. Long-term care benefits are limited to a maximum amount but premiums are usually guaranteed and don’t increase.
When long-term care is needed, the life insurance death benefit or annuity value is accessed to pay for qualifying expenses. The asset-based policies have a death benefit payout that is made to beneficiaries at the time of death if the policy has not been exhausted for long-term care expenses.
Asset-Based/Hybrid Long-Term Care May be Helpful for Clients Who: