Hybrid life insurance is not like conventional insurance. It combines two policies into one, covering both long-term care needs and life insurance. This leaves fewer gaps and ensures the customer has the coverage they need for the rest of their lives. The long-term care coverage kicks in if you are diagnosed with an ongoing health condition. If you don’t use your policy’s long-term care portion, the death benefit from the life insurance will go to your loved ones.
1.Easy to Get
Traditional long-term care policies often require completing a physical and questionnaire before you are even considered eligible for the same. There are fewer questions to answer when applying for a hybrid life insurance policy. Long-term care policies usually are stricter, but the restrictions are more relaxed when combined with a life insurance policy, making such policies more easily attainable.
2.Tax Advantages
A hybrid policy offers two types of tax breaks. Money paid for long-term care coverage may be deductible on your yearly taxes, while death benefit payouts aren’t taxable. Either way, you can save money. Talking to your insurance agent about tax advantages to get the best of both policies is recommended. Your agent can help you determine what benefits you are eligible for and make sure you find the right policy.
3.More Ways to Pay
Hybrid life insurance can be paid in two different ways. For some, it’s easier to pay a lump sum payment. Others find it easier to make smaller payments throughout the course of the policy. Multiple payment options make it easier on the budget as well. Monthly, biannual, or annual premiums make it possible for you to get the policy you want and still stick to your budget.
4.Multiple Options
Hybrid offers other options as well, including locking in your premium amount and providing a money-back guarantee. With hybrid policies, you may lose your death benefit if you use the long-term care portion of the policy. Some policies do offer a small death benefit even if you end up using your long-term care.
5.Fewer Gaps in Coverage
When you have to buy two separate policies, there may be gaps in your insurance. With a hybrid policy, these gaps become less of an issue. Combining both long-term care and life insurance coverage makes it possible for you to have the type of coverage you need without worrying about the cost of an extended illness. There are some hybrid policies that will provide a death benefit even if the long-term care coverage is used. Although these death benefits are considerably less, they are still quite beneficial and can help your loved ones get through a difficult time.
If you are trying to figure out which type of insurance will be most beneficial for you and your family, you may want to explore the options offered by a hybrid life insurance policy. Contact ISU-Wissink Insurance to learn more about how a hybrid life insurance policy will provide you with the benefits you need. We are willing to assist you with all your coverage needs today.