A relatively new option for those who wish to buy long term care insurance is a hybrid policy that packages coverage for long-term care with a universal life insurance policy or a fixed annuity. Such products can be tapped for reasons other than long-term care and even passed on to heirs, although the amount available for other uses is reduced if you use the hybrid to pay for long-term care. Sales of such hybrid or combination products have more than doubled since 2008 to more than $2.4 billion last year, according to Limra, an insurance industry research group. In comparison, $300 million in stand-alone policies for long-term care are sold annually, which are now actively sold by only 16 insurers, compared with nearly 100 a decade ago, as companies face higher costs and drop out of the market. A hybrid policy for long-term care works by keeping a certain amount of cash within the policy.
For the article from the New York Times, click here.