‘Hybrid’ insurance policies offer a way to cover long-term care

By Elliot Raphaelson, Tribune Content Agency

The Savings Game

Because everyone is living longer, many life insurance companies have found traditional long-term care (LTC) policies are not profitable enough.

Several years ago, MetLife and Prudential stopped selling these policies, and they were joined recently by John Hancock, which increased the premiums for existing policies. Genworth still offers new policies, but it has increased the premiums for existing and new policies. Other companies are still selling traditional policies, but premiums are generally guaranteed for one year only, and can be increased if the insurance company gets your state insurance commissioner’s approval.

Consumers do have other policy options that cover both life insurance and long-term care. These options are generally known as “hybrid” policies. One of these options is purchasing a single-premium policy that provides both traditional life insurance coverage and a rider that provides some LTC coverage.

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