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Choosing between individual long-term care insurance, annuities, and hybrid life insurance plans

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According to Insurance News Net, new life insurance policies are designed to keep the cost of long-term care down, but potential subscribers should weigh the pros and cons of three different types of long-term care coverage: hybrid life and long-term care insurance, individual long-term care insurance and annuities.

Experts note that an individual long-term care insurance policy is likely the most comprehensive and the most beneficial. Hybrid policies often offer long-term care benefits for only a certain number of years. Annuities with long-term care allowances offer the least amount of coverage, but the underwriting is often less restrictive, according to the source, so people with preexisting conditions may find it easier to get an annuity than a life insurance plan with a long-term care rider or an individual long-term care policy.

Hybrid and annuities policies are often complex as well, and have specific tax rules. Ownership of a hybrid policy may affect a subscriber's eligibility to receive medicaid, so seniors may want to enlist the services of a financial adviser if they are considering a hybrid or annuity plan.

The Long-Term Care Financing Project estimated that in 2000, 10 million Americans required long-term care. The U.S. Census Bureau notes that Americans age 85 and older are one of the fastest growing demographics of the U.S. population.

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