Hybrid Long Term Care Insurance – Long Term Care Annuity Companies
Hybrid Long Term Care Insurance Annuities
A long term care annuity is a form of hybrid long term care insurance. By definition it’s an annuity with a long term care rider. These hybrid annuities have gained significant market share in recent years. If you have assets to fund a hybrid annuity there can be significant advantages.
Hybrid long term care annuities are also referred to as asset based long term care annuities. These hybrid long term care insurance plans are often acquired using assets rather than ongoing premiums. This is how the term asset based long term care originated.
Linked benefit long term care plans is another term for hybrid long term care insurance annuities. Linked benefit refers to the long term care insurance being linked as a rider with the annuity.
How A Long Term Care Hybrid Annuity Works
Long term care annuities combine an annuity with a long term care rider. This hybrid long term care insurance policy creates a pool of money to pay for long term care costs. It has the advantages of a regular annuity, plus long term care protection.
A popular way to fund an LTC annuity is to reposition an existing annuity or other asset. For example, bank CDs, savings, annuities, life insurance, IRAs or retirement plans. You may be able to increase your current return while protecting yourself with tax-free long term care protection.
Hybrid Long Term Care Annuity Advantages
No Premium Increases – A long term care hybrid annuity can be purchased using a single premium payment. This gives you the benefit of never having to worry about future premium increases. With traditional LTC insurance, guaranteed level premiums are not usually available. Knowing your premium will never change can be a big advantage of hybrid long term care insurance. This can provide peace of mind beyond your long term care protection.
Tax-Free Withdrawals – Tax-free annuity withdrawals for long term care expenses can be a nice advantage of an LTC annuity. The tax free nature of your annuity will depend on the product and your personal situation. We can make a hybrid annuity recommendation and then refer you to your tax adviser for confirmation.
Simplified Health Requirements – A hybrid LTC annuity may have easier health underwriting than traditional LTC insurance. This can make a hybrid LTC annuity policy a great fit for someone unable to health qualify for traditional long term care insurance. Health requirements vary by company.
Premiums Invested Are Not Lost – Unlike traditional long term care insurance, LTC annuity premiums invested are not lost if you don’t use your long term care benefits.
Best Long Term Care Annuity Providers
One Stop Shopping
We shop the leading long term care annuity companies to help you find the best rate and company. We’ll supply you with rates, ratings, and reviews of the companies that sell asset based long term care policies.
Complete the form on this page to request hybrid long term care insurance quotes specific to your situation.
Preferred long term care annuity companies:
The State Life Insurance Company
The State Life Insurance Company is a OneAmerica Company. State Life Insurance Company offers several hybrid LTC annuity policies. These hybrid long term care insurance annuities allow you to better use assets you may have designated for long term care costs.
For example, you can use the asset based LTC annuity’s value to cover your first few years of care. Then protect yourself beyond that with an optional coverage extension. Access to your long term care benefits can even be income tax-free. Contact us for a personalized State Life Insurance quote.
State Life’s Financial Ratings
A.M. Best | A+ (Superior)
Standard & Poor’s | AA- (Very Strong)
Global Atlantic Financial Group
Global Atlantic Financial Group offers the ForeCare fixed annuity. This hybrid long term care insurance annuity can protect you should you suffer a health event requiring long term care.
With the Gobal Atlantic ForeCare annuity, you get all the benefits of a fixed annuity, such as income options and tax-deferral. Plus a death benefit that passes any remaining contract value to your named beneficiary at death. And you get financial protection at two or three times the contract value for long term care costs.
Global Atlantic Financial Ratings
A.M. Best | A- (Excellent)
Standard & Poor’s | A- (Strong)