Traditional Long Term Care
Traditional Long Term Care policies have been around the longest and are the most common type of Long Term Care Insurance over the last 30 years. These types of Long Term Care Insurance insure you while you pay a monthly or annual premium.
A Traditional Long Term Care Plan covers home health care, homemaker services, adult care homes and other assisted living arrangements, in addition to nursing homes.
If you get one of these plans, you won't have to pay your premium when you are receiving care. For business owners (and in some cases for individuals) premiums are tax deductible.
This type of policy Long Term Care Insurance works like your auto, homeowners, and health insurance. You pay your premium to keep your policy in force and receive the benefits when you file a claim.
Because you “pay-as-you-go,” these plans are often more affordable; however, like your health insurance or auto insurance, your premium may increase over time.
Hybrid Long Term Care Policies cost more up-front than traditional Long Term Care Insurance, but they also provide some additional features.
Like Traditional Policies, Hybrid Long Term Care Policies cover home health care, homemaker services, adult care homes and other assisted living arrangements, in addition to nursing homes.
Unlike Traditional Policies, Hybrid Policies will give you your money back if you change your mind and want to cancel your policy, or if you pass away, a hybrid policy pays a death benefit to your estate.
You can fund your Hybrid Long Term Care Policy either in a single payment, or in installments for up to 20 years, or pay premiums for your lifetime.
There are also Annuity Hybrid policies which provide some other creative alternate ways to fund your policy.
With Hybrid Policies, your premiums will never increase.