“What if you never need long term care?” is the biggest objection people have to purchasing Long Term Care Insurance (LTC).
People don’t want to buy it because they view LTC as a “use it or lose it” proposition according to most financial advisors. The premiums are completely lost if they never file a claim. The money is kept by insurance company.
The insurance industry has responded with the creation of Hybrid Long Term Care Policies. These are the fastest growing product in the marketplace. Sales of these policies grew 500% in the six years ending in 2016. In comparison, traditional LTC policies sales fell 19% in 2015 according to Financial Advisor Magazine, Feb 1, 2016.
In exchange for a single one-time upfront premium, you receive 3 guarantees: