Hybrid Life Insurance / Long Term Care Coverage from Beck Insurance Agency.
In terms of insurance products and the insurance industry, this is still a relatively new concept in the market. With hybrid life insurance and long term care coverage, you can address many very important needs at one time: Life Insurance needs which provide for things like funeral expenses, paying off debt, estate creation for family, buyout agreements, estate equalization, and Long Term Care coverage that may be needed later in life.
Here’s how the coverage works.
Secure a hybrid whole life policy and add a Long Term Care benefit rider to the policy. The benefit rider provides up to a 5% monthly benefit of the total original death benefit amount, up to a maximum LTC limit of $350,000. A $500,000 limit will soon be available, and existing policies with $350,000 will be permitted to increase their limit once it is.
This incredible product creates an opportunity to secure and lock in long-term care coverage as well as the premium rate; depending on the premium payment structure. It also provides much greater returns in that should you pass away without requiring monthly care – your heirs will still receive the full death benefit, tax free. If you ended up needing long term care, those expenses would be paid by your policy’s death benefit.
Should you pass away with death benefit remaining, what’s left over will then be paid again to your heirs, tax free. Should you decide years down the road that you no longer need the policy, the product has a guaranteed cash value that often grows to exceed the amount of premiums actually paid in.