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Hybrid life insurance policies with long-term-care benefits can be an important part of a limited and extended care plan for many consumers, Jon Voegele, MBA, ChFC, CLU, chair of Life Happens and a long-time NAIFA member told journalist Cameron Huddleston for an article in Forbes magazine.

Voegele points to data from the 2020 Insurance Barometer study, a collaboration between Life Happens and LIMRA, showing that people who purchase combination life insurance products are mainly motivated by their desire to get a good bargain, alleviate long-term-care-related financial anxiety, and avoid paying separate premiums.

He said that another motivation involves consumers’ desire to avoid premium increases that were common with early generations of traditional LTC-only policies, though the National Association of Insurance Commissioners says dramatic rate increases are less likely today.

Traditional policies’ death benefits and cash value are also enticing features not provided by traditional LTC insurance, though hybrid life policies may not be as flexible in other ways or deliver the same LTC benefits. Consumers should work with insurance and financial professionals to find a solution that works best for their individual situations.

NAIFA’s Limited and Extended Care Planning Center provides resources on a variety of long-term care solutions and planning tools. The Financial Security Alliance, a coalition of industry groups formed by NAIFA and Life Happens, considers long-term care planning an essential part of financial literacy education.

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