Sounds interesting, right? Well it really is. A Life Combo product, also know as a “hybrid”, is a life insurance policy with long-term care benefits. This idea has really exploded over the last couple of years, with credit due to baby boomers getting older.
Another reason for the success of this product is because it has overcome one of the biggest obstacles for those that invest in long-term care policies…making big payments for something that you hope you’ll never need. By grouping your life insurance policy with long-term care benefits, you’ll lock in a payout for your family and those that you designate to receive the death benefit.
The “hybrid” policy goes into effect once the policy holder declares that they need help with two or more “activities of daily life”. This can range from bathing, dressing, eating, etc. The policy will pay you on a monthly basis, or simply reimburse the long-term care expenses. This policy, however, will not cover cognitive loss or any type of mental illness.
The living benefits in a life combo product will not exceed the death benefit. This can be much less then what a standard long term care policy offers. Adding long term care benefits to a life insurance policy can increase your premium up to 20%, so make sure you do your homework before purchasing this new type of product.
Contact Kagan Financial today for more information on Life Combo Products.