Say Hey to Hybrid Long-Term Care Insurance

There’s something great about taking the best parts of two things and putting them together.

For example, hybrid cars combine electric and gas power. They are environmentally sound and save money on insurance and EZPass.

There are hybrid tomatoes, which grow more abundantly under unpredictable conditions, are disease-resistant and more consistent in appearance and flavor. They are farmer favorites!

How about hybrid pets, like the loveable labradoodle? Also, the dachsador, and several hundred other combinations.

Out on the greens, golfers swear by hybrid clubs which, according to authorities, cover those uncomfortable distances beyond 150 yards and just south of a 3-wood.

And now there’s long-term care insurance, a recent innovation that much improves on what’s been offered in the past.

The Nuts and Bolts

Let’s start with demographics.

It’s no secret that Americans are aging. By 2050, nearly one-quarter of the US population will be 65 or over.

While many boomers are healthy, they have recently or are currently witnessing the effects of aging on their parents, their parents’ friends and their friends’ parents – and its impact on their lifestyles. So now might be a good time to ask what they envision for themselves.

It’s estimated that seven out of every 10 Americans age 65 or older will need some form of long-term care. How will they pay for it?

They have worked hard to build up the resources to allow them to live well in retirement. Long-term care costs can make a serious dent in those assets.

For sure, one can self-insure. It lets you maintain control of your money and choose any type of care you want. But it can rapidly reduce or even totally deplete retirement savings. As costs for long-term care rise, investments may not be able to keep up.

Enter hybrid long-term care insurance. It protects retirement savings against rising healthcare costs, combining the best features of life insurance and long-term care insurance.
The policy requires payment of a single premium and guarantees benefits from day one.

If long-term care is needed, costs are reimbursed up to a maximum monthly amount. The policy owner chooses the benefit period, typically from two to eight years, and has control over whether future benefits will increase going forward to account for inflation.

At death, a lump sum is paid to named beneficiaries.

Change of heart? The policy can be surrendered and the premium benefit is returned, minus any loans, withdrawals or other benefits paid under the policy.

Unlike old forms of long-term care insurance where the premiums represented a cost, today’s long-term care coverage premiums represent an investment.

Here’s how this works – in dollars and cents.

Pay in $100,000.

For this, get $5,719 monthly in long-term care reimbursements, up to a lifetime limit of $647,992

If long-term care benefits aren’t needed, the policy appreciates to $137,000 and paid out like a traditional life insurance benefit.

Plus, the original investment back is completely refundable on request.

Long-Term Care for Long-Term Planners

This all works well because life insurance and long-term care insurance are really two sides of the same coin.

As a hybrid, it means if long-term care is needed, you’re covered. If life insurance is needed, you’re covered.

There are lots of choices and options.

And innovative technology has streamlined the application process.

So for those looking to protect the assets they’ve set aside for retirement, and wouldn’t be comfortable digging into savings should they require long-term care, this is a great product. It also works great for anyone with “idle” cash in a savings account or invested in CDs they are rolling over, or have extra assets. This is a great way to put this money to good use.

Interested? Contact us at Covr and we’ll get you moving.

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