Asset Based Plans

If your clients would like to avoid spending increasing premiums on a long-term insurance policy while getting its benefits, they may want to buy an asset-based long-term care solution. Also called “hybrid long-term care policies” and “linked benefit long-term care products“, these solutions come in two forms: life insurance with long-term care benefits and annuities with long-term care benefits. Existing assets are used to fund the life insurance or annuities. Regular payments are made for qualifying long-term care expenses. If care is not needed or if the policyholder dies, assets are transferred to heirs. This is a win-win solution for your clients.

Asset-Based Long-Term Care Policies can benefit your clients with:

  • Underwriting that can be less intensive than for a long-term care insurance policy.
  • Avoiding rising long-term care insurance premiums.
  • Consistency: Since most hybrid policies are fully funded, your clients won’t lose covereage by forgetting to make payments.
  • Benefits, if long-term care is not needed.