Veterans or Spouses Call Today 954-540-6609
PHS Advisors, Inc.
6331 NW 93rd Drive
Parkland, Florida 33067
As long-term care insurance premiums rise and fewer companies offer policies, alternatives to traditional long-term care insurance policies are springing up. A popular hybrid product combines life insurance or an annuity, with long-term care coverage and offers buyers solutions to a number of problems that have kept people from buying traditional long-term care policies.
The life insurance/annuity hybrid policies are often available to individuals who would not qualify for conventional long-term care insurance due to preexisting conditions. In addition, the long-term care benefit is not a “use it or lose it” proposition. If the benefit is not used, or is only partially used, the unused portion is paid out to an individual’s heirs in a death benefit. Finally, one reason people are wary of traditional long-term care insurance is fear of hefty premium increases down the road. Extraordinary premium increases are not a factor with the life insurance/annuity hybrid products. If you have money sitting in a CD or Money Market account making 0-2% interest, this product can be perfect for you.
Hybrid life insurance products add a long-term care “rider” to a permanent life insurance policy (whole life or universal life products, not term life). Policyholders typically pay a lump-sum premium up front or a guaranteed set of premiums for a prescribed period of time. If the long-term care feature is included, it allows the insured to receive a tax-free advance on her life insurance death benefit to pay for long-term care while she is still alive. The insurance benefit kicks in when the policyholder can't perform two of the six "activities of daily living." Once a doctor certifies that the person is eligible, the insured can start to accelerate her death benefit to pay a monthly amount that covers her long-term care costs.
Please call me at 954-540-6609 if you would like to discuss your situation.