In the past clients who have wanted to cover a long term care need, almost always used a traditional long term care policy. The client would pay their annual premium and if he or she needed long care, the policy would pay out a daily or monthly benefit. It was the most efficient way to obtain the needed coverage. The issue that some clients had with this solution was that they received nothing if there was never a need for care. Also, the premium was not guaranteed. Increases in premiums were possible and came to fruition.
Some Advantages of Using a Hybrid LTC Policy:
Guarantees with premium, death benefit, and in some instances return of premium
Your client will receive a benefit whether they live, die, or quit
It is really just a re-positioning of an asset that is earmarked for long term care planning and acquiring leverage for that need