Hybrid annuity accounts are part long term care policy and part annuity. They provide leveraged payouts for long term care expenses like traditional LTCi policies, but also offer the advantages of a fixed annuity policy.
We offer hybrid long term care annuity accounts from several insurance carriers. We will help you compare and contrast these plans to see which policies might be a good fit for your long term health planning needs.
Most hybrid annuities are simply a combination of a fixed annuity and a traditional long term care policy. Your money grows at a declared interest rate each year, but should you need long term care, your accumulated value is leveraged 2-3 times over to help pay for LTC expenses. If care is never needed, the funds are available for withdraw or transfer.
Most often, hybrid policies are funded with a one-time single premium. In other cases, polices can be funded/purchased over a set number of years – say $10,000 a year for ten years. All things being equal, your long term care benefit pool will be larger when the policy is funded with a one-time lump sum deposit.