Hybrid pay plans use either a life insurance policy or an annuity contract as the base platform from which the long term care benefit is calculated. The amount of the long term care benefit is based upon the amount of the initial deposit, the age, gender and smoking status of the insured.

What are the advantages of a hybrid plan contract?

Both Lincoln and Nationwide offer a return of premium feature with this contract. The client can surrender the contract at any time and be guaranteed to receive back 80% of the original premium deposit. The base contract has a two year benefit period for long term care. The client can choose to add a coverage extension rider that extends the coverage for either two or four more years. In NY, the extension of benefits rider can include a COLA provision. Outside of NY, the COLA provision can cover both the first two years of coverage (base benefit) and the extension of benefits rider.

Are other payment options available ?

Lincoln offers the option of paying for three, five or ten years. With Nationwide, the client can choose either a five or ten year payment period.


Who are potential clients?

-Clients who are between the ages of 40 and 70.

-People who have “sleeping assets” such as CD’s and bonds that are maturing and can use these funds to purchase a single pay plan.

-Higher income earners who have surplus cash and like the idea of buying now at a lower cost and not paying premiums in retirement.

-Insured with qualified plans that want to protect the value of the asset and not place the burden of providing their care on their families.