Hybrid Insurance Plans – The Best Bang for Your Buck
Life Insurance, Annuities, and Long Term Care – Covering You During Your Life and After You’re Gone
If you live too long, you may have to deal with long term care, if you pass too soon, those you love can benefit from the legacy you leave. This is one of the benefits of investing in a hybrid life insurance plan. If you’re in good health now and premiums are still low, you should consider this plan as part of your overall financial plan.
Hybrid policies combine long-term care insurance and life insurance under a single plan, commonly known as "asset-based" life insurance, this program provides clients the opportunity to coordinate their retirement planning with financial safeguards. No one likes to think about needing long term care, but the fact is, you have a 1 in 3 chance of needing long term care after the age of 55 but before you reach 75. If you don’t have this coverage and wind up needing nursing home care later, it’s almost certain you will use up a lot of your assets to pay for care.
If your hybrid plan has the life insurance component as part of the policy, you benefit from the accumulation that grows as part of your retirement plan along with knowing that your heirs will benefit from death benefit should you pass.
Facts & Benefits
With the cost of a stay in a nursing home averaging $48,000 to 81,000 a year, it doesn’t take rocket science to know that costs are going to continue to go up every year. Knowing this indicates that many family nest eggs can be wiped out in a very short time. Medicare doesn’t cover long term care costs and the only way you will qualify for Medicaid to pay for care is by spending down your assets first.
Many baby boomers convince themselves they will never need long term care but it only takes one look at what is happening with our health care system to realize that this is one investment you should make because a hybrid insurance plan gives you a “win – win” scenario.
Hybrid insurance plans can be structured in different forms. One plan combines both life insurance and long term care coverage. Another type of hybrid coverage has life insurance and has the option of attaching a long term care rider to the policy. Yet another type of hybrid insurance combines long-term care with a tax deferred annuity, rather than with life insurance.
A Hybrid Plan Example
If you invested in a policy that offers $100,000 of life insurance and $300,000 in long-term care coverage, you can see that there is a difference in the benefits offered. The policy offers a higher limit for long-term care coverage. If you should need LTC, you can understand that the life insurance element begins to dwindle as soon as long-term care benefits begin paying out. If you never use the LTC part of your plan, then at your death the policy will pay the death benefit out to your heirs. Let’s assume you did use the LTC element for a short period of time and then passed away, if this happens your heirs will receive whatever life insurance value has not been used, but it won’t be the original amount.
As you can see there really isn’t anyway you can lose with this proposition as long as you pay for the coverage. The key as I mentioned earlier is that you qualify for the coverage. Perhaps you’ve heard this famous quote: “It’s better to have it and not need it, than to need it and not have it.”
Call me today at (469) 742-0283 and let me help YOU protect your most valuable asset – YOU.