Life insurance is designed to provide a death benefit for your loved ones if you pass away. Long-term care insurance, meanwhile, can help pay for long-term care expenses while you're still living. Having both types of insurance coverage could make your financial plan more complete, but that can get pricey. Purchasing a hybrid life insurance policy can allow you to meet both needs without doubling the cost. A financial advisor can assess your insurance needs and help you plan for the future.
What Is Hybrid Long-Term Care Insurance?
Hybrid long-term care insurance or hybrid life insurance is an insurance product that combines two types of coverage into a single policy. When you purchase hybrid life insurance, you're getting both life insurance and long-term care insurance. This type of coverage can also be referred to as a linked-benefits policy as you're getting two benefits in one.
The life insurance portion of a hybrid policy pays out a death benefit to the individual or individuals you name as beneficiaries when you pass away. The long-term care portion pays out benefits during your lifetime to cover the cost of long-term care.