Long-Term Care Insurance Provider Minnesota

These days, the average 60-year-old American has about a 50% chance of needing some form of long-term care. This percentage has gradually decreased over the years thanks to advancements in medical science. For your peace of mind, having some form of long-term care coverage in place is a smart move. But with a traditional long-term care policy, you could end up paying thousands of dollars for coverage that never gets used. And you'll never get that money back. This is where hybrid long-term care policies come into play. These unique policies are becoming increasingly popular among those who want coverage for their potential long-term care needs without the possibility of "wasting" their money if they never use the benefits. Is a hybrid long-term care insurance policy right for you? By having a better understanding of what these policies entail, you'll be able to decide with confidence.

Understanding Hybrid Long-Term Care Policies

A hybrid long-term care policy differs from a traditional long-term care policy in a few ways. For starters, hybrid long-term care policies are usually added as "riders" to an existing life insurance policy, rather than being purchased outright like a traditional long-term care policy. This allows policyholders to maintain their standard death benefits, but with additional coverage for other common needs such as:

• disability
• critical/chronic illness
• long-term care

The main draw of hybrid policies over traditional long-term care policies is the fact that there is no worry over your money "going to waste." Even if you don't use any of your long-term care benefits before passing away, remaining benefits will be paid out to your designated beneficiary. Furthermore, you have the option of cashing out your policy after a certain number of years for its accumulated cash value. And of course, should you ever need long-term care, you'll be covered. In many ways, a hybrid policy offers the best of both worlds.

Signs a Hybrid Policy is Right For You

Now that you have a better understanding of the differences between a traditional long-term care policy and a hybrid one, how can you determine which is best for you? There are a few signs that could indicate a hybrid policy is your best bet.

You Have Liquid Assets For the Up-Front Premium

Because premiums must be paid up-front for a hybrid policy, you'll only want to go this route if you have the liquid assets freed up to easily pay your premium. And considering hybrid premiums can easily range between $50,000 and $100,000 or more, this may not be an easy feat for some. If you do have the money freed up to pay for a hybrid policy premium up-front, however, you can enjoy the peace of mind in knowing that you're essentially guaranteed to get that money back one way or another. With a traditional long-term care policy, this is not the case; if you never use any of your benefits, the money you paid into your premiums is gone forever.

You Want the Peace of Mind of a Fixed Premium

One of the biggest concerns people often have when shopping for long-term care insurance is the uncertainty of their premiums over time. With a traditional policy, rates are not locked in; this means your premium could increase substantially from one year to the next. With a hybrid policy, on the other hand, your premium is fixed. As a result, you'll be able to enjoy the peace of mind in knowing you'll never need to pony up more money for the coverage you need, regardless of any changes in your health or other factors.

You Want to Avoid Paying For Coverage You Won't Use

With a hybrid policy, you'll always get your money's worth--even if you never actually use your long-term care benefits. That's because you can have your policy premium paid out as a death benefit to your beneficiaries after you pass. You also have the option to cancel or back out of your policy after a certain number of years, at which point you'll receive your premium back. In this sense, a hybrid long-term care policy is great for those who want to avoid paying for coverage that they might not even use.

You're Having a Hard Time Getting Approved for Long-Term Coverage

The underwriting for a hybrid long-term care policy tends to be less complex than that of a traditional policy. If you've had a hard time getting approved for a traditional long-term care policy due to medical problems or other issues, then, you may have a substantially easier time buying a hybrid policy.

Exchanging an Existing Policy

If you have an existing life insurance policy or traditional long-term care policy, you may be wondering how easy (or difficult) it will be to make the switch to a hybrid policy. The good news is that it doesn't have to be too complicated.

Switching From Long-Term Care Insurance to a Hybrid Policy

Unfortunately, the money you have already paid into your traditional long-term care insurance cannot be refunded. However, you can choose to cancel your current long-term care policy (or simply not renew it) in favor of a hybrid option. Just make sure that you overlap the policies so that you don't go even a single day without coverage.

Updating Your Current Life Insurance Policy

If you already have a life insurance policy in place, consult with your life insurance carrier about their hybrid long-term care options. They may have a long-term care rider that can simply be added to your existing policy. This is an option that more insurance carriers are offering these days, especially as more people are becoming interested in hybrid policies over traditional long-term care options. For many, a hybrid long-term care insurance policy is a wise and cost-effective choice. you're looking for assistance in exchanging your existing life insurance policy for one with hybrid long-term care or if you have additional questions about long-term care benefits, contact us today. Our experienced planning professionals would be happy to help you make the right choice!