Hybrid Policies: The Answer to Rising LTC Costs

Long Term Care Insurance is a very important component of personal financial planning. Even if you are in good health now, there is always a chance that you will need some form of long term care as you get older, whether it’s through home health care or an assisted living facility. The security of a Long Term Care policy allows you to prepare for these situations and receive the best care.

However, in recent years the premiums for LTC policies have begun to increase at an alarming rate. This is because people, on average, are living longer than insurance companies expected them to. As a result, the companies must make up for the longer payout periods by increasing the premiums on existing policies.

The levels of premium increases vary wildly depending on the company and the individual policyholder, but on average, Florida insurance companies increased premiums by 20.6% since 2010. Many policyholders cannot afford these premium spikes and have no choice but to let the policy lapse, leaving them without any coverage.

The situation has become so worrying that the Florida Office of Insurance Regulation has been actively researching ways to combat the issue of rising LTC costs. One alternative to a traditional LTC policy is a hybrid life insurance policy that includes long term care benefits.

At Deighton Financial Services, one of our specialties is providing these hybrid policies in the form of universal life insurance policies with additional riders that not only provide long term care benefits, but also guarantee that the premiums will not increase. We and our clients have found that the premium guarantee is quite a valuable feature because it gives you a level of security that is difficult to find nowadays in the traditional LTC market.

If you are interested in hybrid life insurance policies, please give us a call to speak with an experienced agent. Or send us an email at bob@deightonfinancial.com.

Local: 941-342-9440
Toll Free: 1-866-365-6558

Sources

My Palm Beach Post

The Herald Tribune

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