Hybrid Long-Term Care Might Be Right for You

For people worried about the rising cost of health care eating into their savings, a stand-alone insurance policy for long-term care can provide some peace of mind. It can help protect your assets in case you have extended need for assistance, including medical services and personal care.

The downside is that, in most cases, if you are lucky enough never to need coverage, you will not receive anything in return for the premiums you paid. And while premiums are meant to remain level, there is no guarantee that they will.

That's why, for those with the financial wherewithal to do so, self-insuring for the risk of long-term care can make a lot of sense. Instead of paying out money for a policy that may never be used, the money can be invested and funds put aside to cover the cost of care, if needed.

However, if you're lucky enough to be in this group, you may find that a hybrid or combination product -- one that combines a universal life policy with a long-term care benefit -- may be worth checking out. These have been around for several years, though they're not yet widely available.

With a one-time, lump-sum premium payment, policyholders can access a pool of money if they need care. If they never need long-term care benefits, then their heirs receive a death benefit. Some carriers also include a money-back guarantee of the full premium, whenever you request it.