Long-term care insurance is generally expensive. And many people are starting to look for a more affordable option. One such option is a hybrid life insurance policy which combines life insurance and long-term care coverage.
A hybrid policy is a permanent life insurance policy with a long-term care rider. This policy is for people who need both types of coverage. But they want to avoid paying separately for a long-term care policy and a life insurance policy. They want the convenience and savings provided by combining the policies.
The policyholder withdraws funds from the policy when long-term care becomes necessary. And the insurance company pays for care when those funds are depleted. If the policyholder dies without needing long-term care, the full death benefit goes to the beneficiary.
If a hybrid policy is desired, then purchase it before buying a traditional life insurance policy. It’s usually not possible to add a long-term care rider later.