What to Consider Before You Buy?
Hybrid Long-term Care insurance can be a useful tool in long-term care planning – for the right person that is. That’s why its important to consider three things before you buy it.
- First consider its value. Make sure you fully understand the consequences hybrid LTC insurance protects you and your loved ones from.
- Second, consider your options. Not everyone who uses insurance to protect against long-term care costs uses a hybrid policy. Some individuals use a traditional stand-alone insurance policy.
- Third & last, find a good company that offers hybrid long-term care insurance that meets your needs. Some companies offer features that others may not.
That being said, let’s delve into this topic some more.
The Value of Hybrid Long-term Care Insurance Protection
The majority of readers who contact me regarding hybrid long-term care insurance, have one thing in common – they have a personal experience with long-term care. They know what it’s like to be a personal caregiver for a parent or grandparent
For starters, these individuals felt how burdensome, both physically and emotionally, being a caregiver was on their lives. Many of them also paid out of pocket the high costs associated with custodial and skilled care. Most of all, they’ve learned that long-term care is an all-consuming life event.
Hence, their first hand personal experience helps them understand the value of hybrid long-term care insurance protection- morthan someone who has absolutely no experience with long-term care.
Therefore, it becomes their personal desire to have a plan in place in the event they need long-term care in their later years. That’s why they understand the value of having a hybrid long-term care insurance policy.
These readers do research and talk to insurance agents like myself in order to find an insurance policy that can cover them in the event they need care. They never want to pass the burden on (the burdened they’ve experienced) to their loved ones – particularly their spouse or children.
These individuals understand and appreciate the value of what hybrid long-term care insurance protection can do.
Therefore, if you are considering a hybrid policy, make sure you believe it is worth it first. Learn what its like to experience long-term care from a friend, a co-worker, or a relative. Ask around. Also do some research. There is plenty of information online from people discussing their long-term care experience.
Hybrid Vs. Traditional Long-term Care Insurance
When you are considering hybrid long-term care insurance, be sure to consider whether or not it is worth it. Although the hybrid insurance policies have great value traditional long-term care insurance offers great value as well.
Also, traditional long-term care insurance can be quite cost effective as well. More often than not, a traditional policy provides the same amount of coverage as a hybrid policy for much less premium.
For example, a simply designed OneAmerica Asset Care hybrid policy can provide a married 60 year old Texas male a $4500 monthly long-term care benefit for about $427 a month.
However, a simply designed Mutual of Omaha traditional can provide the same $4,500 in monthly long-term care benefits for only $131 dollars a month.
As we can see, the traditional policy is almost $300 less than the cost for a hybrid policy for the same amount of coverage. So why then would you choose a hybrid policy over a traditional policy?
Well, as I always tell my clients, hybrid long-term care insurance is a “want” solution not a “need” solution. It’s for the person who desires long-term care coverage but wants certain “guarantees,” albeit they come with a price.
Hybrid policies provide the following guarantees:
- No premium increases
- Return of premiums if you ever change your mind
- A death benefit if you never need long-term care
Traditional policies simply do not bring these guarantees to the table. Also, many traditional long-term care policyowners have recently experienced exorbitant rate hikes over the last few years. Hence, this should help you to understand why these guarantees are so important.
If you are considering a hybrid policy, consider the guarantees they come with and determine if you want them and if its worth the added cost.
Hybrid Long-term Care Insurance Companies
Lastly, when you are considering hybrid long-term care insurance, consider what each company offers. Not all hybrid long-term care insurance policies are created equal. Some offer key features that others do not. So take your time to learn what’s out there.
For example, Lincoln Financial Group offers a hybrid policy that has no deductible period. Nationwide on the other hand offers a hybrid policy that gives retroactive payments for the deductible period. That’s just two examples of hybrid policies that carry their own unique key features.
While other lines of insurance have multiple companies offering that product. However, when it comes to hybrid long-term care insurance, there is only about a half a dozen companies to choose from. Therefore, the task of becoming an informed consumer regarding this product should not be too daunting.
In addition to key features, make sure you choose a company that will likely approve your application. Although underwriting for a hybrid policy can be streamlined, there are still underwriting requirements that must be met.
Not every company will underwrite an applicant the same way. Each company has their own underwriting guidelines so be mindful of that especially if you have a health condition.
Therefore, if you have a health condition such as heart attack, diabetes, cancer, or stroke, do a pre-screen application with the company you choose before doing an actual application for insurance.
This will inform you of your approval chances. It is better to do a pre-screen application first when you have a health condition than to apply for a policy blindly and get declined.
The next time you consider getting a hybrid long-term care insurance policy remember what you should consider.
Remember to consider the value of protection hybrid long-term care insurance offers for your need. Consider whether or not it is the right long-term care option for you. Lastly, consider the companies and their products that are available on the market.
Sometimes you may need help in this process or maybe a little assistance. If that is ever the case, reach out to us today.
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