Did you know there’s more than one type of long-term care insurance available?

It’s true—and understanding the difference between traditional and hybrid options can help you choose the best plan for your needs and financial goals.

🏥 Traditional Long-Term Care Insurance

This is the classic form of long-term care coverage. You pay regular premiums, and if you need care due to aging, illness, or injury, the policy pays a daily or monthly benefit.

🔹 Pros:

• Highly customizable

• Can include inflation protection

• Offers multiple options for monthly benefit, benefit period, and waiting period

• Premiums may be tax-deductible if the policy is tax-qualified

🔹 Considerations:

• If you never need long-term care, the premiums aren’t refunded

• Premiums can increase over time (though the policy is guaranteed renewable)

💡 Hybrid Long-Term Care Insurance

Also known as “linked-benefit” policies, hybrids combine long-term care coverage with life insurance.

Here’s how it works:

• You can withdraw funds from the policy for long-term care

• If those funds run out, the insurer pays additional long-term care benefits

• If you never use the care benefits, your heirs receive a death benefit

🔹 Pros:

• Guaranteed long-term care benefits

• Guaranteed death benefit and cash value

• Premiums are typically fixed and paid over a limited period

• Peace of mind: use it or leave it—either way, your money isn’t “lost”

🔹 Considerations:

• Often requires a large one-time payment ($50,000–$100,000) or short-term premium payments

• Not as flexible as traditional policies in terms of customizing features

• Premiums are generally not tax-deductible

Which Option Is Right for You?

Both types of coverage have advantages. The best choice depends on your personal circumstances, retirement goals, and financial flexibility.

📞 Let’s talk.
Whether you’re leaning toward traditional or hybrid long-term care insurance—or just starting your research—we’re here to help you make an informed, confident decision.

This Medicare information section is here to educate you about your insurance options and provide you with the resources you need to help you select the right plan for your unique needs.

If there’s anything you need or if you have any questions, please feel free to contact us. We are here to help.