Hybrid Long Term Care Annuity

They provide leveraged payouts for long term care expenses like traditional ltci policies but also offer the advantages of a fixed annuity policy.

Hybrid long term care annuity.

Simply put a hybrid long term care policy combines the benefits of life insurance or annuity with long term care benefits. Hybrid long term care annuities provide long term care insurance if you need care and cash value to your estate if care is not needed. Long term care annuities and life insurance with long term care benefits are growing in popularity as viable alternatives to long term care insurance. Long term care annuity benefits are a pool of money.

A person can buy a hybrid policy by paying a one time lump sum premium. Beginning in 2010 the irs will let those who hold one of these deferred annuities. Long term care annuities are considered to be a type of asset based long term care or otherwise referred to a hybrid policy. These hybrid long term care products like traditional deferred annuities provide future payments based on an initial lump sum investment.

A long term care annuity will typically double or triple your investment for long term care benefits. Hybrid long term care insurance policies typically are funded with a single upfront premium and offer the benefits associated with the life annuity policy base together with additional benefits of long term care coverage. These long term care combination policies avoid the high cost of ongoing annual long term care insurance premiums associated with traditional ltc insurance policies. A hybrid annuity for long term care hybrid annuity accounts are part long term care policy and part annuity.

For example a 100 000 investment in an ltc annuity would provide to 200 000 or 300 000 of long term care benefits. This can provide an annuitant with tremendous leverage of their premium dollars.