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Hybrid Life Insurance: The Best Of Both Worlds


Everything is so expensive these days that it is easy to lose sight of the things that are exceptionally expensive and always has been.  Imagine that you are sitting at your local diner, which is packed with retirees, all of whom are grousing about how “egg-flation” has increased the price of the senior breakfast.  Whether or not they can afford to continue meeting friends for breakfast, which they should, because the walk to the diner and the social interaction are keeping them young, has less to do with whether the menu prices continue to increase and more to do with the extent to which the rest of their finances are in order.  You might balk at the price of two sunny side up eggs with toast, but you would have to eat years’ worth of diner breakfasts before the cost of them equaled the cost of a month’s rent in an assisted living facility.  The average cost of an assisted living facility is about $105,000 per year, but you can pay a lot less for it if you have long-term care insurance.  With the help of an Orlando estate planning lawyer, you can make the best possible decisions about long-term care insurance and other aspects of your retirement budget.

What Is Hybrid Life Insurance?

When you buy life insurance, you are guaranteeing your designated beneficiaries a sum of money that does not have to go through probate.  A life insurance payout is the best-case scenario for the surviving relatives of people who depend financially on a policyholder who died while he or she was still working.  Insurance policy prices being inevitably tied to risk, life insurance gets more expensive the older you are.  Once you reach retirement age, the biggest financial threat you pose to your family is not your eventual death but your need for long-term care. If you don’t have enough money saved for assisted living facilities or nursing homes, then the financial burden falls on your family, who must either pay for your care or take time away from work to attend to your needs.

Hybrid life insurance policies can help you both pay for your long-term care and provide a payout for your beneficiaries.  You buy a life-insurance policy with a certain payout amount, but it has a long-term care rider.  For every year of long-term care insurance you use, the death benefit payout decreases.  If you use up the five years of long-term care, the policy expires.  A hybrid life insurance policy is less expensive than long-term care policies that pay for an unlimited number of years of care, which are only affordable if you start paying premiums years before you start to need long-term care.

Contact Gierach and Gierach About Providing for Your Medical Care and Your Family’s Financial Wellbeing

An estate planning lawyer can help you choose which insurance policies you need, including but not limited to life insurance and long-term care insurance.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.



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