Most people have heard of traditional long term care products. These are pay as you go on a monthly or annual premium basis. You pick the amount of daily coverage you want, the elimination period and length of time for the benefit to last in years. But cost of these products are not guaranteed and you may never use the plan.
Insurance carriers have created more flexible and modular products to better meet consumers' ever-envolving needs. In recent years, hybrid and combination products that integrate life insurance or annuities with limited and extended care products have become increasingly popular. Carriers continue to roll out products that clients can use to not only pay for critical illness situations and care-giving services, but that can also integrate as a key component of a comprehensive financial-planning program.
Now many insurance companies have hybrid life plans using some life and long term care benefits. Most of these are funded with a single premium or a 5 pay or 10 pay scenario and the premiums are guaranteed. Some plans go down at age 40 as well to purchase. Some are reimbursement plans and some are cash indemnity. They can also have inflation options and a final expense death benefit.