What is Hybrid Life/Long-Term Care Insurance?

One of the common objections to traditional long-term care insurance is that if you never file a claim the insurance company, like homeowner’s or car insurance, retains your premiums to pay the claims of others.

Enter hybrid life/long-term care insurance also called linked benefit plans.

If you die never having filed a claim, because it is life insurance, a death benefit goes to your beneficiary income-tax free.
 
A lump sum premium is typically used to fund the policy unlike traditional policies that are typically paid on a monthly basis.

This type of policy is geared to those with a fair amount of after-tax assets and under the age of 70.
 
There is one company, however, that does allow for the policy to be funded with pre-tax accounts such as IRAs.
 
Some life insurance policies also have long-term care riders that you can add for a fee.
 
The main advantage to these types of policies is that premiums are guaranteed not to increase over time.