Do Hybrid Long-Term Insurance Plans Cover Assisted Living?
Author: Andrea Miller
Reviewed By: Gene Altaffer
Hybrid long-term insurance plans do cover assisted living. These policies combine life insurance with long-term care insurance, which includes assisted living. The specific terms of long-term care coverage vary depending on your insurance plan and provider.
How do hybrid long-term insurance plans work?
Hybrid long-term insurance plans pay for long-term care and death claims. The policy pays for assisted living if you need that level of care.
If you never need long-term care, the policy pays your beneficiaries the full policy value when you die. The life insurance component of the hybrid plan consists of either a permanent life policy or an annuity.
What types of hybrid long-term insurance plans can I buy?
You can buy several types of hybrid long-term insurance plans, including long-term care riders, linked benefit plans and chronic or critical illness riders. Linked benefit plans cover long-term care benefits up to about five times your premium cost. If you paid $50,000 for your policy, for example, you could spend up to $250,000 for assisted living care.
Insurance companies sell long-term care riders as an add-on to your life insurance policy. A chronic illness rider may also cover these costs if you need assisted living because of this type of disease. Riders pay a flat amount toward your care needs. You must buy this type of coverage when you buy your life insurance policy, not later