Life Insurance + LTC Hybrids

A simple list of life insurance policies that provide long term care benefits, linked benefits, or hybrid products.

A.     Single premium hybrid policies

1)   Nationwide’s “YourLife CareMatters®”

This is a qualified LTC policy under the IRS 7702B (b) code.

BenefitsCons
Cash indemnity benefit periodLess death benefit compared to Universal Life + LTC rider
Residual 20% death benefitNot available in a few states (e.g. CA, NY) as of November 2016
No risk of premium increase
Several options for inflation protection
Varied premium payment options
Return of premiums

2)      MassMutual CareChoice One

This is a tax-qualified long term care insurance policy from Mass Mutual.

BenefitsCons
Single-premium Whole life + LTCi riderReimbursement method
Dividends earnedUnavailable in New York state as of November 2016
Non-guaranteed
Increasing death benefit
Guaranteed, increasing surrender values
Inflation protection

3)      Lincoln MoneyGuard® II

BenefitsCons
3% or 5% compound inflation protectionReimbursement method
Return of premium
International benefits
Residual death benefit
Couples discount

4)      Pacific Life’s “Pacific PremierCare”

BenefitsCons
Competitive 5% simple inflationReimbursement method
Return of premium option
2-8 years benefit period
Couple’s discount
5% compound inflation option
International benefits

5)      Asset-Care I from State Life

BenefitsCons
Unlimited potential benefitsReimbursement method
5% compound inflation protectionAdditional premiums required if Asset Care Plus rider is selected
Return of premiums
Guaranteed interest (4%)
Fixed premiums
Annual premiums with single-pay option

B.      Life Insurance Policies with ‘LTC’ benefits

Long term care riders pay either temporary or permanent claims. The LTC rider covers recoverable ailments. Some other policies (not included below) have a chronic illness rider that covers permanent conditions for the remaining years of the policyholder’s life.

6)      Nationwide’s ‘Long Term Care Rider’

(Available in New York and California)

BenefitsCons
Cash payoutLimited cash payout
Tax qualified statusLimited international benefits
Accelerated death benefit
10% residual death benefit
International benefits

7)      Transamerica’s Long Term Care Rider

Available in the state of California.

BenefitsCons
Tax qualifiedScaling benefits payout
Cash payout
Return of premiums
Residual death benefit

8)      John Hancock’s ‘Long Term Care Rider’

BenefitsCons
Higher policy amountReimbursement method
No direct payout (pays for bills/receipts)

9)      AXA Equitable

Available in New York State. Also available in California as BrightLife Grow.

BenefitsCons
Cash payoutPayouts limiting formula
Tax qualified
Possible international benefits
Option for increasing face amount

NOTE: Insurance companies usually make adjustments and benefits sometimes change. As a result, this information cannot be guaranteed. Consult a professional insurance agent if you’re looking to buy a police. We can also help you compare top providers and find a hybrid insurance policy that’s ideal for you.

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