Disability Income • Critical Illness Insurance • Long Term Care • Life Insurance

Plan Design Considerations


Stand-alone LTCi policies are typically a "use-it-or-lose-it" proposition. That is, absent contract language and/or policy riders to the contrary, if you die without ever having accessed the LTCi benefits, there are no residual values to the estate, or survivors.

Hybrid life/LTCi Rider policies help assure that someone will receive a benefit, whether it's in the form of the LTCi Rider attached to the base Life Insurance policy, or as a death benefit associated with the base Life Insurance policy. How? When the Hybrid LTCi Rider benefit is accessed, it accelerates the death benefit of the base Life Insurance policy and draws-down, on a dollar-for-dollar basis, from the base Life Insurance policy. So, if the Hybrid LTCi Rider is never used, the full Life Insurance death benefit goes to the named beneficiary. If some, say 50%, of the Hybrid LTCi Rider is used for LTC purposes and the insured subsequently dies, the remaining 50% of the base Life Insurance policy goes to the beneficiary.

Premium Structure & Stability

Stand-alone LTCi policies are subject to premium increases ... your initial purchase premium is not guaranteed to remain level. An insured should expect to see a premium increase(s) down the road. Premium increases must be approved by the state and it will cover all policies in your policy series.

Hybrid Life/LTCi Rider policies offer a flexible premium structure, but typically require that a minimum premium payment be made during the initial policy years. With premium flexibility, payments may be structured as a lifetime payment scenario, or premiums may be structured to allow the discontinuance of premiums after a number of years selected by the insured. Like all insurance contracts, the timely payment of premiums when due is important and the withdrawal of cash accumulation values may defeat the long-term goals of these plans.

Hybrid Life/LTCi Rider policies come in three premium payment forms, Single Premium, Flexible Premium and Fixed Premium. The best approach will be a function of your unique situation, financial picture, philosophy and goals. There also are Single Premium Hybrid Annuity/LTCi Riders.

Premiums While on Claim

Stand-alone LTCi policy premiums are typically waived while on claim.

Hybrid Life/LTCi Rider policies may generally waive the LTCi Rider premium, or they may waive the policy premium entirely, but typically will not allow the policy to lapse while the insured is on a LTC claim. The mechanics of how, when and if premiums are waived while on claim vary by carrier and plan design. These issues may play an important role in deciding which policy is best for you.

Long Term Care Insurance
Long Term Care National Average Costs
Tax-Qualified "Stand-alone" Long Term Care Insurance
Hybrid Life/Long Term Care Rider Combinations
Plan Design Considerations
Elimination (Waiting) Period
Long Term Care insurance Partnership
Long Term Care Insurance in the Workplace
Paying for Care - Insuring the Risk
Paying for Care - Selling Your Life Policy
Paying for Care - Government and Personal Sources
State Filial Responsibility Laws
Long Term Care Insurance Disclaimers and Notes

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Paul SuPrise, CLU, LTCP
770 Nuangola Road • Mountain Top, PA 18707-9507
570-868-6871 • Fax 570-868-6872
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