What are Combination policies - Long Term Care Insurance & Life Insurance?

Combination (Hybrid) LTC & Life Insurance policies are, as the name indicates, Life and LTC coverage combined into one policy. There are many different structures to Combination policies, but typically as long term care benefits are paid out, the life insurance basis amount is reduced by the amount of LTC benefits received. Also, the policyholder pays one combined monthly premium which covers both the LTC and Life benefits.

The Life portion of a Combination plan must be Whole, Universal, or Variable Life insurance. Term life insurance plans are not eligible as Combination plans because Term plans do not hold any value after the term period has ended.

One benefit of Combination plans is that if a policyholder does not require long term care, the life insurance benefit amount is fully received by their beneficiaries after they pass away.

Last updated: January 12, 2023