Premium increases have been an issue for years with traditional LTC plans as some companies have raised rates double digits. It is like comparing any product in life… there are pros and cons to each type of long term care policies.
Hybrid LTCI policies not only offer life insurance with long term care coverage, but they also have a feature that allows the buyer access to their premium if they change their mind if they no longer want the insurance. This feature is called the policy’s cash value benefit. This is a moving number that generally gets larger and larger as the years go by. If you choose to opt out you will receive typically 80-100% of your premium back. How much of the premium premium you get back depends on the company.
There are around ten blue-chip Hybrid Long Term Care Insurance or asset based long term care companies on the market today. Each will have their pros and cons like with any product. Some will give more Long Term Care Insurance and less life insurance, while others will charge no fee if you change your mind.