Life Insurance + LTC Hybrids

A simple list of life insurance policies that provide long term care benefits, linked benefits, or hybrid products.

A.     Single premium hybrid policies

1)   Nationwide’s “YourLife CareMatters®”

This is a qualified LTC policy under the IRS 7702B (b) code.

Benefits Cons
Cash indemnity benefit period Less death benefit compared to Universal Life + LTC rider
Residual 20% death benefit Not available in a few states (e.g. CA, NY) as of November 2016
No risk of premium increase  
Several options for inflation protection  
Varied premium payment options  
Return of premiums  

2)      MassMutual CareChoice One

This is a tax-qualified long term care insurance policy from Mass Mutual.

Benefits Cons
Single-premium Whole life + LTCi rider Reimbursement method
Dividends earned Unavailable in New York state as of November 2016
Non-guaranteed  
Increasing death benefit  
Guaranteed, increasing surrender values  
Inflation protection  

3)      Lincoln MoneyGuard® II

Benefits Cons
3% or 5% compound inflation protection Reimbursement method
Return of premium  
International benefits  
Residual death benefit  
Couples discount  

4)      Pacific Life’s “Pacific PremierCare”

Benefits Cons
Competitive 5% simple inflation Reimbursement method
Return of premium option  
2-8 years benefit period  
Couple’s discount  
5% compound inflation option  
International benefits  

5)      Asset-Care I from State Life

Benefits Cons
Unlimited potential benefits Reimbursement method
5% compound inflation protection Additional premiums required if Asset Care Plus rider is selected
Return of premiums  
Guaranteed interest (4%)  
Fixed premiums  
Annual premiums with single-pay option  

B.      Life Insurance Policies with ‘LTC’ benefits

Long term care riders pay either temporary or permanent claims. The LTC rider covers recoverable ailments. Some other policies (not included below) have a chronic illness rider that covers permanent conditions for the remaining years of the policyholder’s life.

6)      Nationwide’s ‘Long Term Care Rider’

(Available in New York and California)

Benefits Cons
Cash payout Limited cash payout
Tax qualified status Limited international benefits
Accelerated death benefit  
10% residual death benefit  
International benefits  

7)      Transamerica’s Long Term Care Rider

Available in the state of California.

Benefits Cons
Tax qualified Scaling benefits payout
Cash payout  
Return of premiums  
Residual death benefit  

8)      John Hancock’s ‘Long Term Care Rider’

Benefits Cons
Higher policy amount Reimbursement method
  No direct payout (pays for bills/receipts)

9)      AXA Equitable

Available in New York State. Also available in California as BrightLife Grow.

Benefits Cons
Cash payout Payouts limiting formula
Tax qualified  
Possible international benefits  
Option for increasing face amount  

NOTE: Insurance companies usually make adjustments and benefits sometimes change. As a result, this information cannot be guaranteed. Consult a professional insurance agent if you’re looking to buy a police. We can also help you compare top providers and find a hybrid insurance policy that’s ideal for you.