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Morningstar: Hybrid Policies Can Have Significant Drawbacks

By |September 5, 2014|Categories: Advice, Insurance Industry|Tags: , |

The high cost of Long Term Care is an expense that nearly 1 in 2 people will encounter sometime during their lifetime.  Given the high odds and family experiences of many baby boomers, there is tremendous interest in Long Term Care Insurance.  In the past several years, insurance companies have rushed out products called “hybrids” that mix long term care benefit payments with life insurance or annuity options.  The result is a guaranteed premium, often made upfront, and usually return of premium if the policy is unused.  The initial appeal of this approach is obvious.

This week, morning star digs in[…]

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