Q: Today’s question comes from Barri. She writes: What is hybrid long-term care?
A: Life insurance gives your loved ones a financial safety net if you pass away, while long-term care (LTC) insurance helps cover things like caregivers or assisted living. Today, though, some insurers offer hybrid policies that combine both in one, known as “hybrid long-term care.”
Experts say these hybrid products are the insurance industry’s answer to the “old-style” LTC policies – the kind that were often pricey, “use-it-or-lose-it,” and came with rising premiums. Hybrid policies offer a more “balanced” approach, combining LTC with a built-in death benefit.
“Hybrid products are typically more cost-effective than life insurance policies with LTC riders,” says Elizabeth Kusmider, CFP and founder of Kusmider Consulting. “I generally recommend exploring these options between ages 45 and 55 to maximize growth potential and keep costs low. Beyond age 60 or 65, premiums tend to rise significantly, making them less optimal.”
