Excerpt from: Tucson Business (click for full article)
There are a variety of policies offering different degrees of security, but all are preferable to taking the chance of being financially decimated. A typical couple buying a shared policy providing immediate benefits worth $328,500 at age 55 pays an annual premium averaging $2,700. By age 80, their joint benefit would have grown to $708,000 with the built in inflation protection. Also, by age 80, their premiums totaled only $67,000 to provide a benefit of $708,000, which is not too shabby.
So basically, if you ever go on claim for a period as short as six months, your premiums would more than likely be fully reimbursed by your benefit payments.
Keep in mind that an alternative is now available. The main drawback of traditional long-term care insurance is that if you die without ever using your benefit, your premiums could be viewed as a waste of money. Well, not any more. Linked Benefit/Hybrid Products provide a sound alternative in the current economic climate.
A hybrid product is a life insurance policy with a long-term care rider. The rider allows a portion of the death benefit to be paid out to cover long-term care expenses. This type of policy appeals to people who are unsure about whether they will ever need to use the insurance. With a long-term care rider, if you never need long-term care, your beneficiaries will receive your life insurance death benefit when you die. Also, unlike traditional long-term care policies, which may increase you premium, premiums for hybrid products typically are fixed. For people with a limited budget or tight cash flow, this may be attractive.
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