What Is Hybrid Life + Long-Term Care Coverage?
Hybrid life + long-term care (LTC) insurance is a two-in-one solution that helps protect your retirement savings while ensuring you’re covered if extended care is ever needed.
It combines:
-
Life insurance protection that builds cash value
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Access to your death benefit for qualified LTC expenses
-
Optional lifetime coverage that continues after base benefits end
If you never need care, your loved ones receive the full death benefit. If you do, you can use the policy’s LTC benefits tax-free — at home or in a facility.
Why People Choose This Type of Plan
Traditional LTC insurance can feel like “use it or lose it.” Hybrid coverage gives you flexibility and guarantees:
- Lifetime long-term care protection — including home and informal care
- Guaranteed premiums and benefits — no increases, no reductions
- Flexible funding options: single pay or multi-pay (5, 10, 20 years, to age 95)
- Qualified funding accepted — IRAs, 401(k)s, and annuities can be used
- Cash indemnity benefits — caregivers (even family/friends) can be paid
- Built-in care coordination support for claim and caregiver guidance
How It Works
When you meet the long-term care trigger (needing help with 2 of 6 daily living activities or severe cognitive impairment), you can:
- Accelerate up to 100% of your death benefit for care
- Receive benefits for home care, assisted living, nursing, adult day care, hospice, or international care
- Extend coverage for several additional years — or for life
- Skip waiting periods for home care (0-day elimination)
Product Snapshot
| Feature | Details |
|---|---|
| Minimum Face Amount | $50,000 |
| LTC Acceleration | 2 years (base) |
| Optional Continuation | +2, +4, +6 or Lifetime coverage |
| Benefit Triggers | 2 of 6 ADLs or severe cognitive impairment |
| Benefit Types | Home, facility, adult day care, respite, hospice, international |
| Funding Options | Single pay, 5-pay, 10-pay, 20-pay, to age 95 |
| Tax Advantage | LTC & death benefits are income-tax free |
Funding Flexibility
You can fund hybrid LTC coverage in multiple ways:
- Cash or savings
- Qualified accounts (IRAs, 401(k)s, 403(b)s)
- Nonqualified annuities
- 1035 exchange from an existing policy
- Ongoing premium payments over time
Optional Features
- Continuation of Benefits: extend coverage after base benefits end
- Inflation Protection: 2%, 3%, or 5% compound growth
- Return of Premium: get back 100% of funds if plans change
- Additional Premium Window: add funds shortly after issue to boost coverage
Who It’s Designed For
| Persona | Age Range | Strategy |
|---|---|---|
| Tom & Anna | 40s | Build affordable coverage gradually (“policy stacking”) |
| Sam & Carla | 50s | Use inherited or rollover funds to create lifetime protection |
| Alan & Sarah | 65 | Protect retirement income with single premium funding |
| John & Susan | 70 | Maintain liquidity with a return-of-premium option |
Key Planning Insights
- “This plan won’t make you rich — it keeps you from becoming poor.”
- “Short-term care isn’t the risk — long-term care is.”
- “Why pay retail for care when you can pre-buy it at a discount?”
Treat long-term care like catastrophic insurance — a high-deductible strategy for protecting income and preserving independence.
Common Questions
“Can I just self-fund care?”
You can, but LTC is an income issue, not only an asset issue. This plan converts assets into guaranteed income for care.
“Why choose lifetime benefits?”
Conditions like Alzheimer’s can last 10–20 years — lifetime coverage ensures your plan never runs out.
“Will my benefits really be there?”
Hybrid LTC policies are fully guaranteed and regulated — your benefits and premiums can’t change after issue.
Built-In Support When It Matters Most
Every plan includes personalized care resources to make real-life caregiving easier:
- Care Concierge — guidance from claim to care coordination
- Caregiver Coaching — monthly check-ins for family caregivers
- Professional Care Planner Fund — annual allowance toward care planning services
This isn’t just insurance — it’s a plan for how care will actually work when you need it.
We are not connected with or endorsed by the U.S. government or the federal Medicare program.