Annual Premium "Hybrid" LTC Planning Solutions

In today's market, there are a variety of ways to implement a client's long-term care (LTC) plan, including traditional LTC insurance (LTCi), Hybrid Life/LTC products and life insurance with an LTC or Chronic Illness rider.

 

All too often, public forum and social media discussions about Hybrid or "Linked-Benefit" LTC solutions bring out proponents of traditional LTCi and they tend to twist the narrative.  They like to say that large amounts of money - a Single Premium - is required to implement a plan and that's simply false.  It would be a shame if consumers actually shy away from LTCi alternatives not because they aren't a viable option, but because some don't want to acknowldge there are other "pay-as-you-go" options available.  

 

Giving them the benefit of the doubt, these LTCi salespeople are apparently simply uninformed.  Otherwise the only other explanation for their inability to have an honest discussion about these solutions would be that (1) they don't understand them or (2) it destroys their narrative that LTCi is the only economical option for those without substantial assets.  

 

The last five years has seen a growing acceptance of numerous consumer-friendly alternatives to LTCi, so it's important for advisors and consumers to have an easy way to compare them.  We have prepared the table below to show how various LTC planning solutions compare to one another, and how an Annual-Pay hybrid solution may be a very good choice for clients who want an economical, continuous-pay option......

 

 

 

Annual-Premium

Life/LTC Hybrid 

Traditional

LTC Insurance

Single-Premium

Life/LTC Hybrid 

Life Insurance

With LTC/CI Rider

Joint LTC

Protection

YES

YES

YES

YES

Tax-Fee

LTC Benefits

YES

YES

YES

YES

Guaranteed

Premiums

Yes

No

YES

YES

Lifetime LTC Benefit Available from an

"A+" Rated Carrier

YES

NO

NO

NO

Guaranteed

Cash Value

Yes

NO

Yes

?

Guaranteed

Death Benefit

YES

NO

YES

YES

* Includes ongoing lifetime payments & short-pay options

 

 

For those reading this who still feel traditional LTC insurance offers the most benefits on a dollar-for-dollar basis, or Partnership qualification should be a consideration, then we will keep our reply very simple:

 

#1 - The market doesn't care what you "feel"....PERIOD!

 

#2 - Sales numbers in THE MARKET provide the proof.   

As the market continues to expand the offering of client-focused LTC

planning solutions, be sure you are prepared to provide your clients 

with all of the available options.  If you need assistance, please don't

hesitate to contact us to discuss your case.

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