Top Features on a Long Term Care policy:
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Inflation Protection
Adding an inflation protection rider to your hybrid policy ensures that your benefits grow at a specified rate, allowing you to keep up with the rising costs of care.
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Cash Indemnity
Cash indemnity benefits pay out a predetermined, fixed cash amount each month once the policyholder becomes eligible for long term care. This cash benefit is paid directly to the policyholder, regardless of the actual cost of care, and without the need to submit receipts or itemized bills.
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A Short Waiting Period
Your policy will have an “elimination period” which is like a deductible when benefits will not be paid from the policy, but rather out of your pocket or some other insurance.
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International Benefits
When retiring abroad, long-term care (LTC) insurance is crucial due to varying healthcare systems, limited government assistance, and expatriate status. Ensure your LTC policy includes international coverage, accounts for currency fluctuations, offers inflation protection, and features a reputable provider network in your chosen country.
Features You Won’t Find in Hybrid Policies
| Feature/Rider | Description |
|---|---|
| Survivorship Benefits | This rider allows for the waiver of premium payments for the surviving spouse or partner after one insured person has passed away, typically after a specified period (e.g., 10 years) of both individuals having been covered under the policy. This ensures the surviving spouse or partner continues to have coverage without needing to pay further premiums. |
| Nonforfeiture Benefits | A nonforfeiture benefit allows policyholders to retain a reduced, limited benefit if they cancel the policy or stop paying premiums after a certain period. This means that if a policyholder has paid into the policy for a specified time and later discontinues the payments, they can still access a portion of the benefits they’ve paid for. |
| Guaranteed Renewability | Not needed for hybrid plans since they are paid upfront, but in a traditional policy, guaranteed renewability ensures that the insurance company cannot cancel the policy as long as the policyholder continues to pay the premiums. This provides peace of mind and security that coverage will be available when needed. |
| Shared Care | Only one company offers this with a Hybrid policy. (OneAmerica) This rider allows married or partnered individuals to share benefits with each other. If one partner exhausts their benefits, they can access the remaining benefits of the other partner’s policy. This provides a combined pool of benefits for both individuals and can help extend the coverage period for the couple. |
| Restoration of Benefits | This rider restores your maximum benefit amount if you recover from your condition and no longer require long-term care services for a specified period. It ensures that if you need long-term care services again in the future, you will have access to the full original benefit amount. |
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