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.
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 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 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.
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 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.
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.