It may be hard to think about getting life insurance or long-term care insurance when you’re relatively healthy and active in your middle age, but it’s a purchase everyone should at least consider. Customers need to understand the difference between traditional life insurance and long-term care life insurance, and then they can understand hybrid life insurance.
Long-term care life insurance covers the costs of getting care from a nurse in an assisted living facility, the costs of help with daily activities from an at-home worker, or a variety of other expenses older people might endure as they need engagement from other people to live a functional life.
Long-term care life insurance doesn’t cover the costs that happen after death like a traditional life insurance policy. This means family members of the deceased could be missing out on a payout they need to support themselves. This is where hybrid life insurance comes into the picture. You could get the best of long-term care insurance and traditional life.
Who needs long-term care insurance?
Long-term care insurance will usually cover expenses for someone who needs assistance in taking care of themselves in their senior years, although it could be needed for younger people if they have an issue that prevents them from living an independent life.
Sometimes family members or friends will take care of people who need long-term care to avoid the expenses that come along with it, but other times there isn’t anyone available to provide the care. Long-term care insurance is there for people who need support and don’t have the money to pay for it otherwise.
What are some examples of someone who might need long-term care insurance? Obesity is plaguing the American people at the moment, and many overweight individuals might have a hard time getting out of bed, showering on their own, or driving a motor vehicle. Someone in hospice care or long-term care should be able to provide support for them.
Another prime example of someone who needs long-term care insurance is your aging parents who’ve had a stroke or another issue that takes away their cognition or motor functions. Buying long-term care insurance for yourself or someone in your life who is vulnerable is a great way to make sure they get the support they need.
Who needs traditional whole life insurance?
Long-term care insurance is all about the present, whereas traditional term or whole life insurance is more concerned with the future. Long-term care insurance won’t pay for any expenses that happen after the person under the policy has passed away. This can be devastating for the family members of the deceased if they are financially dependent.
In terms of financial security, children and spouses are great examples of people who need a life insurance payout if the breadwinner of the family passes away. Anybody who is supporting their family financially should consider a traditional life insurance policy. Young people with few or no health problems can get a very affordable policy.
As you get older and at the current stage in life in which you are trying to improve your health conditions, life insurance companies are more likely to increase your rates or not even grant you a policy. People should consider life insurance purchases before it’s too late.
But what about people who need life insurance after they pass away, and they also need long-term care insurance because they’re struggling to care for themselves in the present? The amount of people in need of both types of insurance is larger than you may think. This is where hybrid insurance enters the picture.
Is hybrid life insurance the correct purchase for you?
Buying both a term life insurance policy and a long-term care policy would be incredibly expensive, and most people simply wouldn’t have the money to do so. They’d end up choosing one policy they feel they need more than the other. This is where hybrid life insurance comes in.
Companies offering hybrid policies understand there is a large crossover between people who need long-term care and people who want a payout for their family after they’re gone. People considering a hybrid policy should think about which aspect of the policy they care about more and buy a policy that puts more money towards that aspect.
Try to find a company that will pay back your money spent on monthly premiums for long-term care if that part of the policy is never used. This will ease the burden that comes with buying a hybrid life insurance policy.
What are the different types of hybrid life insurance?
It’s valuable to shop around and look at several different companies before making a decision on which hybrid life insurance to purchase. Transamerica has become one of the more trustworthy companies for hybrid life insurance. They are known for being flexible with their customers, allowing people to extend their policies an additional five years.
It’s also important when choosing a hybrid life insurance company to see which ones will allow customers liberty in choosing which doctors, nurses, and professionals to work with. Mass Mutual is one of the best hybrid providers allowing customers to choose their own caretakers rather than forcing them to choose from a specific pool.
Agile Life Insurance is unique because they allow you to get a policy without a medical exam. This may increase rates, but it’s better than being left without a policy at all. Many companies don’t want to give life insurance or long-term care insurance to those who already have a lot of underlying health issues.
Make sure you choose a hybrid policy that caters to your needs the most. This means if you value long-term care more than a death benefit payout, choose a policy frontloaded to give you funds in the short term. If you’re more concerned with the death payout to your family, choose a policy with more emphasis on this than long-term care funding.
You can see why hybrid life insurance has become a very popular purchase. The crossover between those who need at-home care and those who also need to provide for their family members after passing is pretty significant. Find the right company that fits your needs and you shouldn’t have to worry about skimping on either type of insurance.
Shawn Laib writes and researches for the insurance comparison site, Clearsurance.com. He wants to help people find out whether they need life insurance, long-term care coverage, or both in a hybrid package.