Home Articles Using Life Insurance to pay for Long Term Care Insurance

Using Life Insurance to pay for Long Term Care Insurance

Live: Hybrid long term care benefits while you are living

It is projected that 70% of the people turning 65 today will need some form of long term care services in their lifetime. Medicare does not pay for this care; you need specific long term care insurance or a plan for self-insurance

The largest benefit hybrid long term care insurance is going to provide you is while you are living. If you use a hybrid for long term care expenses, you are going to get a great deal. 

With most hybrid policies, the available long term care benefit is going to very much exceed the life insurance benefit. 

There are many different hybrid long term care policies which all vary in benefits. You can choose how you pay for the policy, from a lump sum to payments spread out over a set number of years. 

You can choose based on the waiting period, some policies even offer a 0 day waiting period so the policy would start paying the first day you needed care. 

You can choose based on how long you want the benefit period to be. 

Hybrid long term care premiums tend to remain stable since most of these policies are paid up front or over a short period of time. 

Hybrid long term care policies are also easier to qualify for as the underwriting tends to be less strict. 

Die: Hybrid long term care benefits after you die

If you die before using the full value of the hybrid policy on long term care costs, your policy turns into life insurance and your family will be left a death benefit. 

The amount of the death benefit is going to depend on how much you have used before you pass. If you have not needed any long term care, your family could get a very substantial benefit. 

Hybrids are able to insure you against living too long and needing long term care, or dying too soon and leaving your family without money to pay the bills. 

Do know, if you really need or want to leave a death benefit for your heirs, the long term care pay-outs from a hybrid policy could completely wipe out your death benefit during your lifetime. You should look into a true life insurance policy as well in this situation.

Quit: Hybrid long term care benefits if you cancel the policy 

Most hybrid long term care insurance policies are going to have a provision where if you decide you no longer want the policy, or you want to “quit”, you are able to get your initial premium back. 

When signing up for a policy, make sure to review their quit provision with your agent. 

There is no “use it or lose it” with hybrid long term care insurance. No matter what happens, you or your family will get a benefit. 

Not all hybrids are created equal. Because of the creative nature of the product, every company’s offerings can vary dramatically. Make sure to work with a broker who sells multiple hybrid policies so you can make sure you get the one that will fit your life. 

If this sounds like something that would work well in your financial plan, contact Cardinal and we can get you started with comparison rate quotes for different hybrid policies! 


If you want some price examples of hybrid long term care insurance policies, you can see those here

Listen To Finishing Well on Truth

Newest Live Episodes of Finishing Well are on The Truth Network

Finishing Well
Finishing Wellhttps://www.cardinalguide.com/finishing-well/
Retirement planning involves a lot more than just managing your money. This show is the complete guide to planning for and living in retirement, helping families finish well. Host Hans Scheil will discuss a new topic every week ranging from Social Security and Medicare to IRAs and taxes. Follow along each week by downloading the corresponding chapters below for free! New episodes air: Finishing Well Schedule on Truth Network
- Advertisment -

Recent Posts

The Four Horsemen of the Apocalypse | Sunday Message

Many people have questions about the end, Armageddon, and the Antichrist. But in this Sunday morning episode, Pastor Greg Laurie encourages us to look...

The Promises of God – Part 1 of 1

“For all the promises of God in him are yea, and in him Amen, unto the glory of God by us” II Corinthians 1:20.

Are You In or Out? | Luke 9:57–62 | Our Daily Bread Video Devotional

Are you in or out? Yes or no? Left or right? Sometimes life forces big decisions on us without much notice. Maybe you’ve had...

Loving in Spite of: Rerun

Welcome to Masculine Journey fellow adventurers! This is a previously recorded Podcast episode. The guys discuss loving someone in spite of their quirks, faults or characteristics. There is a lot to unpack here, so enjoy. The clips used come from the...

What Makes God LAUGH?

" Hey King Of Kings, I'm Here All Week" 🙂

Medicare’s Annual Choice: The 2 paths of Medicare

Every year, Medicare beneficiaries have the choice of 2 paths, and they can only pick one. Hans and Robby go over both paths, as well as the pros and cons.    Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for...

Loving in Spite of After Hours: Rerun

Welcome fellow adventurers! This is a previously recorded Podcast episode. The guys continue their talk on loving in spite of, right here on the Masculine Journey After Hours Podcast. There's no advertising or commercials, just men of God, talking and...

Amazing Love (Part 1 of 7)

Although Jesus often urged His listeners to pay attention to His teachings, the religious leaders resisted hearing about God’s amazing love. Their attitude reveals the greatest barrier between God and man. Hear more on Truth For Life with Alistair Begg.

Why Israel Matters: A Classic Conversation with David Siegel

In this classic interview, Pastor Greg Laurie sits down with then Consul General for Israel, David Siegel, for a conversation about the significance of...
%d bloggers like this: