SeniorLiving.org is compensated when you click on the provider links listed on this page. This compensation does not impact our ratings or reviews. Read our Editorial Guidelines here to learn more about our review process and to learn more about how we are compensated.
When you acquire any type of insurance, including a long-term care (LTC) insurance plan, you’re making a decision to reduce the financial risk for yourself as you age. Approximately one-third of all Americans ages 65 or older will need some form of long-term care,1 and the costs of that care can be steep. A hybrid long-term insurance plan can offer even more security to you and your family, since it combines the benefits of an LTC policy with a life insurance plan. In this guide, we’ll take a closer look at the best hybrid long-term care insurance and help you find the right plan for you and your family.
The Best Hybrid Long-Term Care Insurance in 2023
Choosing the right hybrid long-term care insurance requires careful thought and consideration of your future needs. To help you in your search, we evaluated the top insurance carriers with hybrid LTC insurance and narrowed down our list to a handful of options. We focused on the carriers offering quality pricing options, plan diversity, and resources. Continue reading to see which insurance carriers made our list!
Nationwide is an insurance and financial services company founded in 1926. Over the years, it has developed a reputation for dependability and quality insurance products. When it comes to hybrid long-term care insurance, Nationwide offers excellent variety with three different options based on your needs.
Did You Know? Active or former federal employees and their family members can purchase long-term care insurance via the Federal Long-Term Care Insurance Program.
The Nationwide CareMatters plan offers long-term care benefits for an individual policyholder. If you don’t use the LTC benefits, your plan beneficiaries will be paid a death benefit based on the amount of life insurance you require. The second option, Nationwide CareMatters Together, offers LTC benefits to couples and pays out a death benefit to the second person, whether or not the LTC benefits were used. The Long-Term Care Rider is an LTC rider added to a Nationwide universal life insurance policy that pays out LTC benefits — deducted from the death benefit — as needed.
Nationwide makes it easy to combine the benefits of life insurance with long-term care insurance. If your spouse or other beneficiaries are counting on a death benefit, however, you’ll need to be careful about which hybrid plan you choose. Some Nationwide plans will not pay out any death benefit if you require long-term care, while others will deduct the cost of care from your death benefit.
OneAmerica has been in business for more than a century, making it one of the most trusted names in insurance. The carrier offers two kinds of hybrid LTC plan: You can add LTC as a rider to your OneAmerica life insurance plan or you can get LTC benefits with a qualifying fixed annuity.
A fixed annuity is not the same as a standard life insurance plan, but it offers a way to grow your assets and get a steady stream of income throughout retirement. By adding LTC benefits to your annuity, you could even access tax-free funds for long-term care. Since annuities are typically only for a set period of time, you can pay to extend the life of your annuity, thereby extending the period of your LTC benefits.
OneAmerica is a great option if you want an alternative to hybrid policies that only offer death benefits to your beneficiaries. If you want an annuity to provide you with a steady income stream during retirement, you can get one with added LTC benefits through OneAmerica. It’s important to read the fine print on your plan, however, since you could lose out on death benefits if you have a OneAmerica annuity and require long-term care.
Securian is one of the largest insurance carriers in the country, with more than 22 million policyholders.3 Rather than offering a variety of preset plans, Securian lets you customize its hybrid long-term care plans to fit your needs. That can make it easier to get the exact amount of coverage you want at a price that makes sense for you.
Pro Tip: Want to learn more about how life insurance works? Head to our guide on life insurance for seniors.
First, you can choose how you want to pay. Securian allows you to pay the full amount for your plan up front, or you can make five, seven, 10, or 15 payments. You can also choose LTC benefit periods ranging from four to eight years. There are plenty of other ways to customize your plan, but some of the most common add-ons include inflation protection (3 percent or 5 percent) and premium refund options.
If you like taking complete control of the benefits you get in an insurance policy, Securian could be a great option. From varied payment plans to several paid add-ons, there are many ways to customize your hybrid LTC plan with Securian. The principal drawback is that you could end up paying a lot more for your plan if you want to enjoy all the paid extras.
Lincoln Financial specializes in annuities, life insurance, and long-term care planning. The carrier offers not only hybrid LTC plans, but also resources and guidance to help you make the best decisions with your money.
FYI: Looking for the best life insurance to meet your needs? Check out SeniorLiving.org’s guide to the best life insurance plans for seniors!
One of Lincoln Financial’s primary offerings is MoneyGuard LTC planning, which is essentially a universal life insurance policy with a long-term care rider. It’s available to adults between the ages of 30 and 80, with special discounts for couples. The best part of acquiring a hybrid LTC plan through Lincoln Financial is all the resources that come with it. Lincoln Financial offers dozens of articles, case studies, and personalized planning tools to help you find the best solution.
Lincoln Financial offers older adults a way to plan for their financial future and acquire policies that actually make sense for their needs. With Lincoln Financial, you can access a death benefit and LTC benefits with tons of extras, including no waiting period. Just keep in mind that you won’t be able to get an idea of the cost of your plan unless you reach out to the company directly and begin the application process.
Brighthouse Financial wasn’t officially launched until 2017, but it has a long history in insurance via its parent company, MetLife, as well as its predecessor, Travelers Insurance Company. Brighthouse Financial offers a single hybrid long-term care plan known as SmartCare. With SmartCare, you can see the value of your plan grow via an Indexed Universal Life (IUF) policy.
SmartCare offers accelerated death benefits after two years or long-term care benefits for a period ranging from four to six years. Best of all, Brighthouse Financial has a simplified underwriting program that makes it far easier to qualify even if you have preexisting conditions. Eligible applicants are not required to take a medical exam, and you could receive the underwriting decision in less than 24 hours.
If you’re worried about qualifying for a hybrid LTC plan, Brighthouse Financial’s relatively lax underwriting process could help you quickly get the plan you want. With ample inflation protection, you could see your long-term care amount grow over time. Brighthouse Financial requires a 90-day waiting period before your LTC benefits kick in, and you may have to show additional proof of a chronic illness to get your claims reimbursed.
| Carrier | Number of policies | Issue age | A.M. Best company rating | Optional inflation protection | Guaranteed premiums* |
|---|---|---|---|---|---|
| Nationwide | 3 | 30 to 75 | A+ | Yes | Yes |
| OneAmerica | 2 | 20 to 80 | A+ | No | Yes |
| Securian | 1 | 40 to 75 | A+ | Yes | Yes |
| Lincoln Financial | 1 | 30 to 80 | A | Yes | Yes |
| Brighthouse Financial | 1 | 40 to 75 | A | Yes | Yes |
*May apply only to certain plans from certain carriers
Hybrid long-term care combines the benefits of a traditional LTC plan with the benefits of a life insurance or annuity plan. Since a traditional long-term care plan often has use-it-or-lose-it benefits, a hybrid option is a great way to ensure you get some benefit from your investment beyond peace of mind. With a hybrid plan, you can often get LTC benefits or a death benefit for your beneficiaries. With some carriers, you may be able to use your LTC benefits up to a certain limit while still qualifying for a reduced death benefit.
Many carriers offer different ways to pay, including flexible payments over several years or a lump-sum payment up front. Hybrid long-term care plans generally cover the same things as traditional LTC plans, including:
When you opt for a traditional long-term care plan, you are paying only to get coverage for long-term care. A traditional plan does not offer the death benefit you would get with a hybrid plan. The amount of LTC coverage you receive can also vary between the two types of plans. However, the differences between hybrid and traditional LTC insurance don’t stop there.
With a traditional LTC plan, you generally have to pay monthly or annual premiums. These premiums usually go up as you age. Hybrid plans, however, generally make you pay a lump sum up front or multiple payments over a set number of years. In most cases, hybrid LTC premiums are guaranteed not to increase with time.
Another major difference between hybrid and traditional LTC insurance is the use-it-or-lose-it factor. With traditional LTC insurance, if you never require long-term care, you don’t get any payout or reimbursement of your premiums. If you opt for a hybrid plan, a death benefit will be paid to your beneficiaries if you never require long-term care.
If you just want to protect yourself against the costs of long-term care, a traditional LTC insurance plan may be the better choice. A traditional plan is generally cheaper, but it also depends on how long you have to pay your premiums. Since the premiums go up over time, you could still end up paying more. On the other hand, if you know you want to leave something for your loved ones and you don’t want to risk losing your premiums if you don’t require long-term care, a hybrid plan is likely the better option.
For further comparison, head to our guide to the best long-term care insurance in 2023.
If you’re searching for a hybrid long-term insurance plan, make sure you get something that fits your needs and budget. Below are a few tips to help you in your search.
The answer can vary based on your circumstances or policy, but the majority of hybrid long-term care plans do not offer tax-deductible premiums.
In most cases, you do not need to report your long-term care benefits because they are generally not taxed. If your benefits exceed the IRS-approved limit, however, they could be taxed as income.
Many hybrid long-term care plans come with the option to cash out and receive a portion of your paid premiums if you decide you no longer want the plan.
That depends on how much long-term care you require. Hybrid plans generally cost more than traditional plans, but if you want the added security of a death benefit without having to pay for a separate life insurance policy, a hybrid long-term care plan could be worth it.
Administration for Community Living. (2020, Feb 18). How Much Care Will You Need?
Congressional Research Service. (2023, July 21). Long-Term Care Insurance: Overview.
Securian. (2023). About Securian Financial.
