Does Long-Term Care Mix With Life Insurance? – Wall Street Journal – 09/29/12




The Wall Street Journal

Weekend Investor –  Family Value – September 29, 2012

Does Long-Term Care Mix With Life Insurance?

By Kelly Greene

Life insurance policies with long-term-care riders, known as “hybrid” products, have taken off in the past few years, as reported in last week’s Weekend Investor. Sales jumped 56% last year, according to Limra, an industry-funded research group.

One reason is that they overcome one of the biggest stumbling blocks for buyers of long-term-care policies—writing a big check for a product you hope you will never use. By pairing life insurance with long-term-care benefits, you can lock in a payout for your spouse, children or other heirs, even if you don’t use the long-term-care benefit.

Comments September 29, 2012

Insurance companies price policies based on their risk.  There is a 7 in 10 risk you will need long term care if you live past the age of 65.  There is a 10 in 10 risk you will die.  Insurance companies charge more for hybrid policies that pay both long term care and death benefits than traditional polices that solely pay for long term care because they are taking on more risk.  Traditional Long Term Care and Hybrid Life/Long Term Care Insurance Policies have unique advantages compared to one another.


Traditional Long Term Care Insurance Advantages

1. Highest benefits for the lowest price

2. Options: waiver of premium when you go on claim, restoration of benefits when you recover, refund of premium at death, shared benefits for partners and spouses, waiver of premium when your spouse or partner goes on claim

3. Partnership Program Medicaid asset protection

Hybrid Life/Long Term Care Insurance Advantages

1. Large one-time premium payment

2. Policy can be canceled with a refund of premium at any time

3. You get your money back in a the form of a long term care benefit or a death benefit

Let us research the market and design a long term care solution to meet your needs and budget at:

Aaron Skloff, AIF, CFA, MBA
CEO – Skloff Financial Group

Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA), Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies.  He can be contacted at or 908-464-3060.

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