Quick Quote Tool
Okay, you've explored products and have it narrowed down. Now you get to dive into some numbers. Select the plan type, input some additional information about your client and voila! You have a quick quote that will help your client make the right decision for them. The calculator shows you how much benefit can be purchased based on the amount of premium. The calculator also reflects total benefits vs. total premiums paid. The Insurance Multiplier is a powerful way to explain the per dollar benefit.
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Calculate LTCI Cost vs. Benefit
Underwriting
Disclaimer: This calculator assumes a 3% compound inflation rate and a 6-year benefit period. Discounts are typically available for couples. There may also be limited pay options available. It is meant to inform and educate on the potential benefits based on the parameters selected. Please refer to the contract for final rates and underwriting eligibility. This is not an offer of coverage.
Comparing hybrid and traditional long-term care (LTC) insurance.
Traditional LTC insurance (LTCi) is a standalone policy that reimburses policyholders for eligible long term care services in exchange for a premium that in most policies can increase. The premium is waived while receiving benefits. If care is not needed, premium stays with the insurance company to pay claims for people who need care. A hybrid policy combines either life insurance or an annuity with long-term care coverage and returns money to heirs if little or no care is needed. Inflation coverage on both traditional and hybrids is optional but highly recommended.
Hybrid policies have become more popular in recent years with about half of consumers choosing hybrids and half choosing traditional LTCi.
Even though hybrid policies may cost more, they provide more guarantees:
- a guaranteed premium and a way to pay it off
- a guaranteed benefit at death if care is never needed or if the care needed is less than the death benefit
An LTC focused hybrid policy provides benefits in two ways:
- Long-term care benefits: If long term care is needed, hybrids first use the policy death benefit or annuity account value and typically provide an additional amount of LTC coverage much greater than that. It is like attaching a standalone policy to cover the longer duration risk of long term care expenses.
- Death benefit: If long term care benefits are not used, beneficiaries will receive the full death benefit or annuity account value upon the death of the insured. If a portion of the long term care benefits are used, the beneficiaries will receive the remaining portion of the death benefit or annuity account value. A few have a residual death benefit even if care equals or exceeds the death benefit.
Which of these popular LTCi solutions is right for your client?
| Life or Annuity Hybrids | Traditional LTCi | |
|---|---|---|
| Affordability | Offers robust benefits with good LTCi leverage | Offers more robust benefits with more affordable recurring premiums |
| Pre-Existing Health Conditions | May have more flexible health underwriting | Stricter health underwriting |
| Guarantees | Guarantees premiums and guarantees you will receive a benefit | Unless you pre-pay the premiums, these policies may raise rates in the future based on overall claims experience |
| Benefit Payout | Many pay benefits as cash without requiring receipts, which also allows you to pay informal caregivers | Must file monthly claims to be reimbursed for eligible expenses |
| Gender and Couple's Pricing | The extra cost for females is not as much as on traditional LTCi | May contain shared care riders that extend coverage for healthy couples |
| Tax Advantages | Both have tax-free benefits and first-dollar tax deductibility for business owners and Health Savings Accounts owners. Traditional LTCi may allow Medicaid protection against asset spend-down. | |