---
title: New Premiums Increasing on Hybrid Life + LTCI Plans
description: It's always a good time to plan for long-term care - but it may be an especially good time to consider LTC Insurance because plans may never again be such a great value.
---

[NAIFA's Limited and Extended Care Planning Collective(LECP) ](https://lhc.naifa.org/lecpblog)

# [New Premiums Increasing on Hybrid Life + LTCI Plans](https://lhc.naifa.org/lecpblog/new-premiums-increasing-on-hybrid-life-ltci-plans)

 Written by [Tom Riekse Jr.](https://lhc.naifa.org/lecpblog/author/tom-riekse-jr) | 3/30/21 6:00 PM

Many clients find that the best way for them to plan for LTC is by purchasing a linked life/ltc plan. [ Compared to traditional LTC policies ](https://www.ltcipartners.com/blog/the-surprising-similarities-between-traditional-ltc-and-new-life/ltc-plans)which provide pure long-term care protection (and the most LTC protection per premium dollar) linked Life/LTC trade off some of that leverage to provide guaranteed premiums and a life insurance benefit.

The current pandemic has [increased awareness](https://www.ltcipartners.com/planning-for-long-term-care-in-america/how-todays-long-term-care-insurance-can-help-you-in-todays-crisis-and-tomorrows) of long-term care and the need to plan.  It has also had broader economic impact in the form of higher unemployment and lower long-term interest rates.

Those lower long-term interest rates [can have a dramatic impact](https://www.ltcipartners.com/blog/how-coronavirus-and-low-interest-rates-may-impact-ltc-insurance-and-why-you-may-want-to-act-now) on the performance of an insurance carriers reserves - especially on single-premium life/LTC products. If you are a financial professional, it is critical to let you clients know of the changes and impact.

To give an example, let's say a 60 year old single woman in Ilinois is interested in repositioning some assets from investments into a single premium hybrid life/LTC plans.   She's working with an advisor who has narrowed down the choices to two carriers, and decided the ideal single premium would be $100,000.  

The advisor worked with their brokerage general agency who provided this side-by-side comparison of LTC Benefits.  Note: These are actual premiums from currently available products and carriers.

|   | **Linked Life/LTC Carrier Option 1** | **Linked Life/LTC Carrier Option 2** |
| --- | --- | --- |
| Initial Monthly LTC Benefit -(use for home or LTC facilities | $4,000 | $3,435 |
| Initial LTC Total Benefit | $254,847 | $218,891 |
| Long-Term Care Benefit Period | 5 Years | 5 Years |
| LTC Inflation Option | 3% compound | 3% compound |
| Monthly Benefit at Age 90 | $9,701 | $8,340 |
| Total Benefit Pool at Age 90 | $618,600 | $531,307 |
| Cash Surrender Value Age 90 | $70,000 | $102,303 |
| Type of Policy | Expense Reimbursement | Cash Indemnity |
| **Current Single Premium** | $100,000 | $100,000 |
| **NEW Premium** | Approx $120,000 for applications received after June 26th, 2020 | Approximately $113,500 for applications received after July 17th, 2020 |

 

For these particular clients, their decision will based on whether they want more LTC benefit per premium dollar from the reimbursement products or a little less benefit but the flexibility of a cash plan.  In the above example they may also be interested in the higher cash surrender value (in case they change their mind) of carrier 2 as well. 

However, regardless of what decision they make one thing is clear - **they can save substantially  by purchasing now instead of waiting until later this year.  **Because of the extreme low interest rate environment, carrier 1 is increasing single premiums about 20% for applications received after June 26th and Carrier 2 is increasing single premiums about 13.5% for applications received after July 17th. 

Both these carriers offer other premium payment options such as 10-pay which will be subject to new pricing but won't be as adversely impacted.

It's always a good time to plan for long-term care - but it may be an especially good time to consider LTC Insurance because plans may never again be such a great value.

[View full post](https://lhc.naifa.org/lecpblog/new-premiums-increasing-on-hybrid-life-ltci-plans)

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