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Hybrid LTC Product
So your clients can focus on what’s most important
Give long-term care (LTC) clients a boost with Hybrid LTC Product, a nonparticipating whole life insurance policy that combines the benefits of long-term care protection with the guarantees of life insurance.
Our state approvals list shows where you can use Hybrid LTC Product for your clients.
Why choose Hybrid LTC Product
Flexibility
Design the long-term care (LTC) plan that meets client needs
Hybrid LTC Product is a linked-benefit policy that offers a guaranteed death benefit, LTC benefit and three different return of premium (ROP) options so clients can focus on the benefits most important to them:
- Maximize protection on their premium dollars
- Maximize leverage on their premium dollars
See how three ROP options impact the LTC benefit pool
See how each ROP option impacts the LTC benefit pool for the same client
Sample client
- 55-year-old male
- $100,000 single premium
- 3% compound inflation protection option
- 6-year benefit period
- Couples discount and non-tobacco
| ROP option: Vesting | ROP option: 75% | ROP option: LTC Boost |
|---|---|---|
|
$346,252 Day 1 total LTC benefit |
$396,004 Day 1 total LTC benefit |
$415,921 Day 1 total LTC benefit |
|
$840,445 Age 85 total LTC benefit |
$961,206 Age 85 total LTC benefit |
$1,009,550 Age 85 total LTC benefit |
This is a hypothetical example for illustrative purposes only. It assumes all other policy details are the same and is intended to help show the different LTC benefits available to a client depending upon the ROP option selected.
The sample client in the example above could increase their total LTC benefit pool by 20 percent if they opted for an LTC Boost policy over a vesting policy.
It's important to keep in mind that the ROP option a client selects will impact the death benefit and surrender value of their policy, and the ROP option cannot be changed after the policy is issued. Make sure your clients fully understand each potential ROP option so they can select the policy design that best meets their needs.
Hybrid LTC Product also offers clients the flexibility to:
- Select the benefit period (4-8 years) and premium schedule (single-pay, 5, 7, 10 or 15 years) that meets their needs. Plus, multi-pay policies now allow clients to pay a larger lump sum as their first premium payment, but the premium payments after that must be in fixed equal amounts.
- Add optional LTC inflation protection to increase their LTC benefit by a set percentage (3% or 5%, simple or compound) each year to help protect them from rising costs.
- Choose to add an optional premium waiver for additional protection. If the client goes on claim while they're still paying their policy's premiums, the optional Premium Waiver for LTC Agreement means we'll cover their entire premium payment once they're eligible for benefits. And we'll continue to waive them as long as they are eligible for benefits.
Freedom
Whatever care clients need — wherever they need it
Hybrid LTC Product’s LTC cash indemnity benefit can be used however clients want2. Period. No fine print, no restrictions. Cash indemnity policies automatically send the policyowner a monthly cash benefit regardless of actual expenses incurred; no reimbursement or proof of expenses is required.
Whether their goal is to stay at home and receive care from a family member or explore group facilities, their cash indemnity benefit will support their care plan — not dictate it.
Additionally, Hybrid LTC Product’s coverage extends abroad. Clients traveling abroad will have access to 100% of their LTC benefit pool and can receive up to 50% of their maximum monthly cash indemnity benefit. If they return to the U.S., they are able to receive their full monthly benefit.
See the power of cash indemnity in action
This scenario shows how a client may have the same total benefit pool available to her but the amount of benefits she actually receives varies depending on the policy’s payment method — in this example, over twice as much with cash indemnity vs a reimbursement contract.
See how each ROP option impacts the LTC benefit pool for the same client
Sample client
- 55-year-old male
- $100,000 single premium
- 3% compound inflation protection option
- 6-year benefit period
- Couples discount and non-tobacco
| Sample reimbursement contract | Sample cash indemnity contract | |
|---|---|---|
| Day 1 long-term care total | $408,115 | $408,115 |
| Day 1 monthly max | $5,000 | $5,000 |
| Age 80 long-term care total | $1,082,850 | $1,082,850 |
| Age 80 monthly max | $13,266 | $13,266 |
| Ages 80-81: informal care • Projected cost: $0 | ||
| Covered | No | Yes |
| Total benefits paid | $0 | $326,356 |
| Ages 82-83: Home health care • Projected cost (for 20 hrs/week): $110,355 | ||
| Covered | Yes | Yes |
| Total benefits paid | $110,355 | $359,807 |
| Ages 84-85: Assisted living • Projected cost: $210,142 | ||
| Covered | Yes | Yes |
| Total benefits paid | $210,142 | $396,687 |
| Total benefits paid for all types of care | $320,497 | $1,082,850 |
$762,353 more benefits paid over 6 years
with cash indemnity vs a reimbursement contract
This is a hypothetical example for illustrative purposes only. Projected costs are calculated using 2021 national medians of costs of care ($27.82 per hour for home health aide and $50,924 per year for assisted living facility) and assuming 3% annual inflation. Source: Calculate the cost of long-term care. LTCnews.com. 2021.
Unlike reimbursement policies, the cash indemnity model doesn’t limit your client's monthly maximum benefit to actual expenses incurred, which means they can fully leverage their policy and not leave any benefit unused.
Simplicity
We believe in benefits, not hassle
Fortress Brokerage Solutions’s Care Management Program™
Our Care Management team makes the transition from needing care to getting care as smooth and simple as possible.
Our team is available whenever clients need us, not just when they’re on claim. We can help clients understand their policy and its benefits, guide them through the claims process and discover care resources in their area. Our program is designed to help clients put their Hybrid LTC Product policy into action so they can get the care they choose — when they need it most. With us, clients are in control, but not alone.
The power of cash indemnity
Your client’s benefit is theirs to use however they want. They never need to wonder whether an expense is covered or submit receipts to show how their benefit is being used.
Premiums and benefits are guaranteed
Premiums will never increase and benefit amounts are guaranteed, so clients know what they are getting right from the start.
Hybrid LTC Product product details
Policy type
- Nonparticipating whole life insurance policy with cash indemnity long-term care benefits. This policy is considered a qualified long-term care contract.
Issue ages & premium payment options
- Payment options (can be made online, direct, EFT/ACH or 1035 exchange). For multi-year policies, all premium modes available with no modal factor.
| Payment | Single-pay | 5-pay | 7-pay | 10-pay | 15-pay |
|---|---|---|---|---|---|
| Age | 40-75 | 40-75 | 40-73 | 40-70 | 40-65 |
Minimum face amount
- $50,000
Death benefit test & option
- CVAT & level
LTC benefit payment type
- Cash indemnity
Underwriting classes
- Simplified Issue, Sex Distinct: Non-tobacco Single, Non-tobacco Couples, Tobacco Single, Tobacco Couples
- Couple’s discount is available through a special underwriting class; only one need apply to receive this benefit
Agreements available
- Acceleration for Long-Term Care Agreement — automatically included
- Extension of Long-Term Care Agreement — automatically included
- Long-Term Care Inflation Protection Agreement — optional
- Premium Waiver for LTC Agreement — optional
LTC benefit period options
- 4-8 years
Return of premium options
- Vesting: Offers 100% premium refund if policy is cancelled, subject to the vesting schedule
- 75%: Offers a 75% return of the premium client has paid if they cancel their policy at any time and increases the LTC benefit above the vesting
- LTC Boost: Provides a return of premium equivalent to policy's guaranteed cash value at the time of surrender and maximizes the LTC benefit
LTC Inflation Protection Agreement
- Increases monthly long-term care benefit at a set percentage annually — even after client goes on claim; options include: 3% or 5%, simple or compound interest
Reduced paid-up benefit
- Should the insured fail to complete the premium payment schedule, the policy will provide a reduced paid-up nonforfeiture benefit based on the total premiums paid. If the policy included the LTC Inflation Protection Agreement, the reduced paid-up benefit would continue to annually increase by the selected inflation option.
Guaranteed minimum death benefit
- 10% of the base face amount or $10,000, whichever is less
Maximum monthly LTC benefit payment
- Equal to the maximum LTC benefit, not subject to IRS per diem limitations. Client may choose an amount less than the maximum benefit at any time extending the duration that benefits would be available.
Elimination period
- Elimination period is 90 calendar days from the date the insured is certified as chronically ill by a licensed health care professional. Home modification (up to $5,000) and caregiver training (up to $1,000) are accessible during the elimination period.
Examples of qualified long-term care services
- Adult daycare
- Assisted living
- Bed reservation
- Caregiver training
- Home health care
- Home modification
- Hospice
- Household services
- Informal care
- Nursing home care
- Respite care
Benefits outside the United States
- Total LTC benefit pool remains unchanged and insured can receive 50% of maximum monthly benefit for all qualified services, including informal care, outside the United States, its territories or possessions. Benefits are paid in the United States currency. If the insured returns to the United States, the non-United States monthly benefit limit will no longer apply.
Vesting policy’s vesting schedule
| Single-pay or 5-pay | 7-pay | 10-pay | 15-pay | ||||
|---|---|---|---|---|---|---|---|
| Year(s) 1 | 80% | Years 1-3 | 80% | Years 1-6 | 80% | Years 1-11 | 80% |
| Year 2 | 84% | Year 4 | 84% | Year 7 | 84% | Year 12 | 84% |
| Year 3 | 88% | Year 5 | 88% | Year 8 | 88% | Year 13 | 88% |
| Year 4 | 92% | Year 6 | 92% | Year 9 | 92% | Year 14 | 92% |
| Year 5 | 96% | Year 7 | 96% | Year 10 | 96% | Year 15 | 96% |
| Year 6+ | 100% | Years 8+ | 100% | Years 11+ | 100% | Year 16+ | 100% |
Product resources for consumers
BOLD sales support
Contact the Fortress Brokerage Solutions Advanced Sales Team today.
(678)322-3040
Info@fortressbrokerage.comNext steps
Related links
1. This assumes all premium payments have been made as scheduled at policy issue and no loans or surrenders are taken.
2. Under certain circumstances, benefits may be taxable. Clients should consult with a tax advisor.
3. The caregiver training benefit can be used to pay for training of a friend or family member to provide care to the insured. This benefit can be triggered prior to the elimination period. The maximum benefit is $1,000.
4. Home modification benefit allows the insured to pay for modifications to his/her home, enabling the insured to remain in his/her home longer. This benefit can be triggered prior to the elimination period. The maximum benefit is $5,000.
Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. Hybrid LTC Product is a life insurance policy that provides long-term care benefits and an accelerated death benefit for terminal illness. Other terms and conditions apply.
Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods.
Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
Hybrid LTC Product may not be available in all states. Product features, including limitations and exclusions, may vary by state.
Hybrid LTC Product includes the Acceleration for Long-Term Care Agreement and Extension of Long-Term Care Agreement. These two agreements are tax qualified long-term care agreements that cover care such as nursing care, home and community-based care, and informal care as defined in the agreement. These agreements provide for the payment of a monthly benefit for qualified long-term care services. These agreements are intended to provide federally tax qualified long-term care insurance benefits under Section 7702B of the Internal Revenue Code, as amended. However, due to uncertainty in the tax law, benefits paid under these agreements may be taxable. Please ensure that your clients consult a tax advisor regarding long-term care benefit payments, or when taking a loan or withdrawal from a life insurance contract may not be available in all states. Product features, including limitations and exclusions, may vary by state.
The optional Long-Term Care Inflation Protection Agreement is available with 3% simple interest, 3% compound interest, 5% simple interest or 5% compound interest.
Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.
Qualified long-term care services received outside the United States, its territories or possessions are limited to the non-United States monthly benefit limit. If the insured returns to the United States, the non-United States monthly benefit limit will no longer apply.
Exclusions and limitations
Eligibility for long-term care benefits includes satisfying a 90-day elimination period. This is a period of time (90 days) during which no long-term care benefits are payable following the date the insured is determined to be eligible for benefits. You are not eligible to receive benefits if your long-term care service needs are caused directly or indirectly by, result in whole or in part, from or during, or there is contribution from:
- alcoholism or drug addiction; or
- war or any act of war, while the insured is serving in the military, naval or air forces of any country at war, whether declared or undeclared; or
- active service in the armed forces or units auxiliary thereto; or
- the insured's active participation in a riot, insurrection or terrorist activity; or
- committing or attempting to commit a felony; or
- any attempt at suicide, or intentionally self-inflicted injury, while sane or insane.