Part of our guide: Long-Term Care Insurance: Costs, Options and Planning →
Many clients avoid traditional long-term care insurance because they don’t want to pay for something they may never use. Asset-based (hybrid) long-term care solves that by combining LTC benefits with a death benefit, so the money does something either way.
Key takeaways
- Asset-based LTC combines long-term care coverage with a life insurance death benefit, so premiums aren’t lost if care is never needed.
- Premiums can be paid as a single premium or over 5, 10, or 20 years, or for life.
- Four client profiles fit especially well: those with idle cash, pre-retirees, retirees with unneeded income, and high earners not yet wealthy.
If they need care, the policy pays for it. If they don’t, their family receives a death benefit. The premium isn’t wasted either way.
1. Clients with idle assets (ages 40–80)
Clients holding maturing CDs or bonds, proceeds from a business or home sale, or a recent inheritance. Their concern is the effect a care event would have on their spouse, family, and finances. Typical payment: single premium.
2. Pre-retirees (ages 55–67)
Clients at peak earnings with excess income for premiums, ideally 59½ or older so they can reposition qualified money not needed for retirement income. Their concern is the financial and lifestyle risk to their spouse. Typical payment: 5-, 10-, or 20-pay, or pay for life.
3. Retirees with income to reposition
Retirees with IRA required minimum distributions, annuities, or Social Security income they don’t need for living expenses. Their concern is protecting assets and not depending on family for care. Typical payment: 5-, 10-, or 20-pay.
4. High earners not rich yet (ages 40–55)
Clients with excess annual cash flow, often after caring for a parent or grandparent, who see the value of buying earlier. Some also want to insure their parents to protect their own savings. Their concern is protecting income and assets across generations. Typical payment: 5-, 10-, or 20-pay.
Next steps
Hybrid products differ in benefit structure, inflation options, and whether benefits are indemnity or reimbursement. Compare them with traditional LTC design options, and let our LTC team help you match the product to the client.
Frequently asked questions
What is asset-based long-term care?
A hybrid product, usually life insurance or an annuity with LTC benefits, that pays for long-term care if needed and a death benefit if not.
Who is a good fit for hybrid long-term care?
Clients with idle cash, pre-retirees with excess income, retirees with unneeded RMDs or annuities, and high earners who want to lock in coverage early.
Can I pay for hybrid LTC with a single premium?
Yes. Many clients use a single premium from idle assets, and multi-pay options of 5, 10, or 20 years are also common.
Reviewed by Tim Fuller on 2026-09-25
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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