Hybrid Life Long Term Care Products
Hybrid life long term care products are designed to offer both long term care and life benefits.
Not only Met Life, Lincoln Financial and Transamerica but also John Hancock have hybrid plans available. In fact, Met, Lincoln and John Hancock are in all states including NY. Comparatively, The TransAmerica plan is not offered in NY. Contracting forms are available at the bottom of the blog.
Plan has standard underwriting. The product is offered on a guaranteed UL platform so it will note lapse but has limited gain potential. They have a true LTC rider which follows the rules of a normal/traditional LTC plan and will pay out 100% of the death benefit as a long term care benefit. Of the three life pay products listed here, the Hancock policy will have the lowest annual premium.
The Lincoln Money Guard product is not a standard life/LTC hybrid. The plan is designed for both lump sum deposits and also a 10 pay schedule. Underwriting is simplified on this product. After all, there are no fees with Money guard and the client has the ability to take back 100% of their premium after year 5.
The Lincoln Financial Money Guard Underwriting at a Glance – Click here to download
Plan offers a hybrid/life product on an Indexed Universal Life platform. It has a number of interest crediting methods. Caps on the annual point to point crediting are as high as 18%. In short, this product has the biggest potential for death benefit, LTC and also cash value growth. This plan can run on its own cash value if average annual returns run as expected.
Met offers their product on a Whole life platform. As with Hancock and Trans, this product is a life pay premium. Premiums tend to be similar to that of the Trans IUL product. As a whole life plan this product offers both guaranteed growth and a dividend.